Valchion is a action RPG with retro graphics and simple mechanics. It features bright, GameBoy Color-styled visuals, and a (hopefully) memorable soundtrack. It should be released for Windows, Mac OS X, and Linux. It's also being made with the Blender Game Engine, which features fast game creation and no time spent exporting to an external engine.
The sewers are coming along. The walls have gotten a new texture, the light's improved, and the water's pretty much the way I want it.