Long time passed since the last news. As you can read in the new homepage, the project has finally found new life, and is undergoing a rewrite of several parts of the operating system.
This has allowed to reconsider legacy design choices and has granted maximum control over licensing terms.
Progress news (aka the never released 0.0.6)
2005-12-02 - Salvo Isaja
We have a preliminary, but working, support for VM86, to run legacy DOS applications, most notably real mode stubs that start protected mode applications. This allows to run DOS protected mode applications without special modifications, for example we have managed to run the Mpxplay MP3 player. We have a new, improved, FAT driver, ATAPI CD-ROM and ISO 9660 file system drivers to access compact discs (although with some limitations), the keyboard driver has been improved to support keymaps and the kernel includes some support for processes. We plan to release our 0.0.6 alpha before the end of the year. That would be likely the last 0.0.x series, as deep rearrangement is in progress in a separate branch: using a new libc for the kernel, new memory management code, new low-level kernel code, better modularity and of course better support for applications.