In this paper, we describe the progress of the construction of the Multi-Conjugate Adaptive Optics laboratory test-bed at the University of Victoria, Canada. The test-bench will be used to support research in the performance of multi-conjugate adaptive optics, turbulence simulators, laser guide stars and miniaturizing adaptive optics. The main components of the test-bed include two micro-machined deformable mirrors, a tip-tilt mirror, four wavefront sensors, a source simulator, a dual-layer turbulence simulator, as well as computational and control hardware. The paper describes changes in the opto-mechanical design, characteristics of the hot-air turbulence generator, performance achievements with the tip-tilt and MEMS deformable mirrors as well as the design and performance of the wavefront sensors and control software.© (2003) COPYRIGHT SPIE--The International Society for Optical Engineering. Downloading of the abstract is permitted for personal use only.