It has been a while since I have posted an update, but there has not been many visible changes to the game engine. For the last while I have been working on creating the monsters and doing their artwork. I have a list of 80 monsters right now and the artwork created for 35 of them. I have also planned out all the standard armor pieces in the game too. Right now there is 83 different pieces of armor and each could have dozen of different enchants on them so there will be hundreds of possible pieces of armor to find or buy. Those numbers for monsters and amor do not include uniques, which will be monsters or items in where only one of them will exist in the game world.
Also, I recently added the projectile system. This is used to cast spells or throw items. The plan is have any item in the game throwable. Some might be more effective than others. For instance throwing a blind potion at an enemy gives the chance to blind it, but throwing a most scrolls at an enemy probably won't do much good...
Here is a video showing some of the updates: