Blogging about Bluebooking is Christine's bailiwick (also see her papers here and here), but I couldn't resist a link to Citrus, an auto-blue-booking software program created by a Colorado law alum. I haven't tried it out, and so I can't vouch for it. I don't think it would work for law review articles (yet), as it only fixes case cites and statutes/regs ... but it's a pretty neat idea.
As I recall from my law review cite-checking days, Bluebooking is an art as well as a science: often the rules didn't cover exactly what you needed to figure out, or you'd run into interpretive issues. No software program will be perfect. And so programs like Citrus won't make blue-booking obsolete, but rather might ease an otherwise painful exercise, much like TurboTax has done for tax form preparation.
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