An update, one that I know causes some controversy within the UK military:
Despite his conviction being quashed at the Court of Appeal, military prosecutors intend to hold a re-trial. A preparatory hearing is scheduled at the Military Court in Wiltshire on May 1st to commence this process and Danny will plead not-guilty.
Link:http://dannynightingale.org/

Oddly the outline of the case only refers to the pistol found, not the rather large amount of ammunition - which I have yet to see an explanation for.

Yes, there is an appeal for donations.