According to this update, it's looking like West Virginia will play in the Big 12 this year and pay damages to do so. The Big East is currently suing to keep WVU in the league.
It's a big issue for both leagues. The Big 12 needs WVU this year in order to have the 10 teams required to fulfill the rather expensive TV contract that saved the league in 2010. The Big East really needs to have eight teams to make a schedule and keep its BCS AQ status for the final two years of the current BCS contract. The Big East would only have seven teams in 2012 without WVU because the five schools the Big East recently added won't actually join until 2013.