Though I feel as though the writer for your local paper overstated the case a bit:
Not only did the fertilized eggs survive this bizarre coupling, but they developed fully parental larvae, according to Margulis.
Checking out the DevBio account on the site you link, it is obvious that the result has not been confirmed, and that Margulis feels it needs to be confirmed:
It should be a relatively easy matter to test this assertion, and Fred Tauber and Lynn Margulis have suggested several experiments that should be done to either confirm or refute Williamson's claim that the larva is a true interphylum hybrid (Tauber and Margulis 1992). These tests include...
And:
Williamson realizes his limitationshe does not know biochemistry, molecular biology, or developmental genetics. He is a developmental anatomist. He says that he is putting forth a hypothesisa refutable claim based on evidenceand he is hoping someone will pick up the gauntlet and check his hypothesis.
It may be misleading from the DevBio site, but it appears that Williamson published his experiment in a non-peer-reviewed book in 1991 - surely this sort of result would be confirmed in the past dozen or so years?
The description is also giving me serious flashback regarding another anatomist, J.A.Davidson, aka Salty, who argued with several of us that Daphnia never mate sexually, despite decades of genetic and other evidence. Why? Because he
knew that Daphnia didn't mate sexually based on some anatomical studies he did in the 1950's and wasn't familiar with the genetic analysis used (plus all the geneticists were liars).