Parmed,
First of all, congratulation to your invite to UPENN. However, I must apologize about the acupuncture clinic, I'm clueless about it. I will find out from my PD or residents and get back to you regarding that issue.
As far as the progress of the program goes, I think it's doing very well. It recently was accredited for another 4 years, up to 2009. We recently add another hospital site (an already Penn-affiliated hospital) to the residency training, and we're able to moonlight after the first year.
So far, I'm quite impressed with internship because it's very academic oriented rather than scutworked. As a PGY-1, you will be doing a pre-PM&R internship. The rotations are set up in a way that's PM&R related. You will be doing IM, FM, Neurology, Neurosurgery, PM&R, Gen Surg, Orthopedics, Pediatrics. All of the rotations are done at top-notch departments. For example, you do your pediatrics rotation at CHOP (Children's Hospital of Philadelphia) which is considered as nation's top children's hospital. You see many exotic cases as well as the 'bread and butter' cases of pediatrics. The diadatics offered at Penn are well-taught and educational. You also work with excellent residents from different programs.
One more good thing that i would like to point out about the internship is that I haven't slept in a hospital since my internship started!! As a PM&R intern, you only spend 3 months of Internal Medicine in taking calls (q4) throughout the year, possibly another month of Gen. Surg. Rest of the year, you work from 8 to 5pm, maybe 6 the latest. Most of the rotations expect you to learn rather than do scutwork. They usually are not short of staffs, so often time you can see a good case and spend 4-5 hours reading about the case on the same day.
Anyway, I hope my information has helped you in some ways. I will try to find out about the acupuncture clinic and get back to you on that. Again, good luck on your interview. If you need anymore info, feel free to ask. If i happen to be around on your interview day, i'll be happy to give you a tour.