It's still going. I've added a skill system and worked quite a bit on magic. I have some problems with balance though, so it's going to take more work. And I still haven't gotten melee combat fixed... So, progress is somewhat slow. Probably not going to help that I have a play coming up, but that's life.
Also, go check out Wolves for the Wolf God. Not only is it a cool blog, the owner is doing a giveaway.