I've been watching the conference and going on what the leader of the team that made the discovery/experiment said in it.
She repeatedly uses the word "substitution" thourghout her speech and in the Q&A.
There is phospherous in the lake bed they got the bacteria from to create the cultures they experimented on.
From a Nasa
article on the issue...
"The newly discovered microbe, strain GFAJ-1, is a member of a common group of bacteria, the Gammaproteobacteria. In the laboratory, the researchers successfully grew microbes from the lake on a diet that was very lean on phosphorus, but included generous helpings of arsenic. When researchers removed the phosphorus and replaced it with arsenic the microbes continued to grow. Subsequent analyses indicated that the arsenic was being used to produce the building blocks of new GFAJ-1 cells.
The key issue the researchers investigated was when the microbe was grown on arsenic did the arsenic actually became incorporated into the organisms' vital biochemical machinery, such as DNA, proteins and the cell membranes. A variety of sophisticated laboratory techniques was used to determine where the arsenic was incorporated."
That it's part of a common group and that they were investigating effects of a zero phosphorous, high arsenic diet on the microbe suggest that it wasn't a seperately started life, but actually an adaptation of an existing strain. I can't quite figure out whether the arsenic was incorporated pre-laboratory or not though.
As for the news coverage of this... I'm paying them little heed because this is an absolutely perfect topic for sensationalism.