Published: Dec 02, 2010 8:06 PM EST
Updated: Dec 02, 2010 5:06 PM EST

NEW ORLEANS (AP) - A federal judge says a pilot program to fix homes with tainted drywall made by a major Chinese manufacturer is progressing well.

At a hearing Thursday, U.S. District Judge Eldon Fallon said a program to repair up to 300 homes in Florida, Louisiana, Alabama and Mississippi with drywall made by Knauf Plasterboard Tianjin Co. appears to be on the right track.

In October, plaintiffs' lawyers and Knauf announced that they had reached a deal to fix the homes.

Still, thousands of homeowners with drywall made by other Chinese companies will not be covered under this program. The drywall has been linked to corrosion of wiring, air conditioning units, computers, doorknobs and jewelry, along with possible health effects.

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