Wired News reports: "Fueling nuclear reactors with the element thorium instead of uranium could produce half as much radioactive waste and reduce the availability of weapons-grade plutonium by as much as 80 percent. But the nuclear power industry needs more incentives to make the switch, experts say."
I think the summary says it all, but now all we have to do is convince the people who pay for the reactors to switch to thorium instead of uranium. The retooling costs seems to be one of the big obstacles here in the US.
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Here is another article on the subject: "Thorium: Is It the Better Nuclear Fuel?"
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