Seeing as BeyondUnreal's ModWorks now points to here, I'll put additional DL links here
UT2003hq: [Link]
FileFront: [Link]
As for a progress report, there isn't any.
Real life has taken priority for now, so I haven't made anything new since the last news post
I've had a few ideas over the months, but nothing was actually made
Hopefully 2k7 will have more thorough xhair support