Development restarted and the language system has been completed. As discussed in the mailing list, the language system now has embedded messages in the code and uses XML files to save translations. This is basicly the same system as gettext (which Drupal uses) and Qt Linguist. For more information, see the mailing list archives.
Currently, I am working on the database access layer.
At the end of the month I will post a big summary for September 2007 at my blog. Though I emphasize that if you wish to remain updated on development, you should subscribe to the mailing list. This forum is now largely unused, so don't let the silence in here trick you to think development has halted.