I'm in graduate school studying cognitive science and IMO we need to understand the brain much better before we can create strong AI. My main interest is in "concepts" (mental representations of categories), memory and similarity assessment, but it seems like only the surface of these things has been scratched. The same could be said for affect, attention, etc. One thing I find really interesting is that our "conscious" "working memory" (i.e. trying to remember a string of numbers short term or engage in deduction/calculation 'in our head') seems to have such poor capacity and computational power, but it interacts with and draws on signals from the 'unconscious processing' aspect of the brain which has very high computational power. That lowly 4-7 chunks of information capacity for working memory seems to be an important part of what makes us more intelligent than other animals for whom it's even smaller.
Someone made a good comment about the fly. It's silly that people are trying to make programs to beat the Turing test, reflecting one of the highest forms of animal intelligence, when we can't even simulate insect intelligence properly.