Well, most of you already recognized that there isn't going on much here lately.
Our current status is as following:
We abandoned the goldsrc engine as the platform for Half-Life Town (hltown)
and subsequently changed the working title to just "town".
The orge engine (http://www.ogre3d.org/) was the new weapon of choice and we created a playable test environment with physics support.
Then we put the project "on hold" because protector, the lead programmer, had some other projects, that had to be done.
To put it in words: Yes it's dead. For now.
We will be back and finish the job.