Solid state systems for hydrogen storage continue to be the focus of considerable international research, driven to a large extent by technological demands, especially for mobile applications. Density functional theory (DFT) has become a valuable tool in this effort. It has greatly expanded our understanding of the properties of known hydrides, including electronic structure, hydrogen bonding character, enthalpy of formation, elastic behavior, and vibrational energetics. Moreover, DFT holds substantial promise for guiding the discovery of new materials. In this paper we discuss, within the context of results from our own work, some successes and a few shortcomings of state-of-the-art DFT as applied to hydrogen storage materials.