Sheriff Kathrine Mackie said she would grant them time to obtain legal advice 'on a matter which in not necessarily straight forward'. Details here from the BBC.
Meanwhile, if their spokesman Mike Ferrigan has been reported accurately, it is unfortunate for Occupy to resort to a threat against the Council if they are not granted alternative premises. The threat of 'direct action' is certainly not something I have heard from those various members of Occupy with whom I have spoken.
If true, it rather nails the expressed desire for 'democracy' which characterised my discussions with them earlier in the week. They are, of course, free to obtain the use of council or other empty property on the same terms as anyone else - namely that they pay the rent and convince the owner that they are responsible occupiers.