If you have not received yet, try to call the PIO number almost everyday OR if you can, go the Embassy.
My son's application reached the Embassy at Washington DC on 18th August 2008. I started calling the Embassy after 3 Business weeks. I emailed, faxed and left voice mails, but did not hear anything back. I used to call the number for PIO card, and leave messages almost everyday after 25 business days. I did not get any reply. At last on 30th Sep, a lady did pickup the phone (on the PIO line). For a moment I thought it might the voice prompting me to leave the message. She was courteous. She told me that she received the application on August 30th even though USPS had delivered to the Embassy on 18th. I received the PIO card the very next morning.
I guess I should have submitted the application personally at the Embassy, which would have definitely made things faster.