Development for Ashes of Apocalypse on Morrowind is still going strong. We have toned down some of our goals for it though. The size of the world will be a bit smaller then originally planned. The storyline will focus on playing as a wastelander and standing up against the United Barrier Nations. I will be completely finishing it with a couple of other people and then release it. There may be expansions released for it later on.
The development of Ashes of Apocalypse 2 for Oblivion has begun! We haven't decided on a official name yet but it will be set before the events of Ashes of Apocalypse for Morrowind. Expect more details soon.