Status Update: February 28, 2009
You didn't think we'd abandonned this project, did you? Here's where we're at:
1) To take advantage of the 1024x768 screen resolution now available in the newest version of AGS, we're in the midst of repainting and re-sizing many of the original screens done several years ago. This is going very quickly, and has been outsourced to a wonderful and enthusiastic artist in Poland.
2) The re-painting is happening simultaneously with the work by our new animation lead, Wyatt Miles of Flash Potatoes, LLC. Many of you will have seen his work on Dave Gilbert's Emerald City Confidential. Wyatt and his team are nearly done with the first 90 second cutscene, an animated movie that opens the game. Expected completion date for that is April, and when it's done I'll post it here as a bit of a teaser trailer.
3) Wyatt is also working on the in-game sprites. These are coming along well, and you can see the Jake sprite below.
In summary: Work continues, it's going really well, but no, I'm not yet ready to announce a release date. Sorry!
Screenshots
Sample Character Model Sheets
Sample Character Sprite