Taken from Cricinfo:
'Michael Vaughan is definitely out of this year's Ashes, according to BBC reports.
Vaughan had a fourth operation on his knee earlier this week, and surgery showed that it was more damaged than had been believed. Later, an ECB spokesman told AFP: "I can confirm that Michael will miss the Ashes tour." The ECB will issue a full statement at 1300BST (1200GMT).
But even before Monday's surgery, Vaughan's tour prospects were in doubt as he was already ruled out for four to six months, with the first Ashes Test starting on November 23.
Vaughan has not played for England since being forced to return home early from the tour of India in March. He attempted a comeback for Yorkshire last month but the injury flared up again and he was advised that further surgery was necessary.
Vaughan last year skippered England to their first series victory over Australia in nearly two decades and had been desperate to lead the side's bid to retain the Ashes. And nevermind the Ashes - his prospects of ever playing again must now be hanging in the balance. '
Damn! When he wasn't ruled out for sure I could live in hope, but this latest news is devastating.