I've done a bit of research regarding the saving system of UnrealEd, and have not received any good news. Due to how the game operates and how it saves files a standard campaign is rather hard to implement. So with that, I think the best course of action is to move the game to Half Life 2.
Alongside that, I can say that the first chapter of Dust is fully written and designed. We have some concept art coming soon, mostly in character design. I've also had a chance to work with a highly talented musician who is working on a musical piece for the game.
So all in all, the game isn't dead. It's far from completion, but isn't dead. Thanks to all who have shown an interest in Dust!