I mentioned a while back of Dan Styer's paper on Evolution and Entropy. In it, he directly tackled this issue and pointed out quantitatively that the decrease in entropy is more than sufficiently balanced by the increase in entropy elsewhere in terms of the energy received by the earth externally.
Now comes another paper that refined Styer's work and draw up an even stronger conclusions by not adopting the assumption in Styer's paper.
Abstract: Skeptics of biological evolution often claim that evolution requires a decrease in entropy, giving rise to a conflict with the second law of thermodynamics. This argument is fallacious because it neglects the large increase in entropy provided by sunlight striking the Earth. A recent article provided a quantitative assessment of the entropies involved and showed explicitly that there is no conflict. That article rests on an unjustified assumption about the amount of entropy reduction involved in evolution. I present a refinement of the argument that does not rely on this assumption.
There ya go! Do you think those who continue to use such arguments against evolutions would read and, more importantly, UNDERSTAND it? I doubt it!
Edit 9/17/09: This paper has been published. Here's the full reference: E.F. Bunn, Am. J. Phys. v.77, p.922 (2009).