Thought I'd say a few things.
Firstly, this game is still strong in development. Sorry for the lack of updates but with such a small development team its hard to work on the game, maintain the forums and keep everyone up to date. However, on the world of Hyrule forum, updates and previews are very regular.
http://hyrule.lexipixelgames.com/phpBB3/ Come and Register, join the community
So far the project has been under official development for about 6 months. We are slowly closing onto another testing client. Open Alpha.
Check the forum for details on our progress, however here is the generals-
Mapping - Hyrule Field, Death Mountain, Kakariko Village, And Castletown completed. Working on other areas and other aspects of the game.
Design - Majority of everything has been planned from the beginning, but we are working on some extra design documents and rediscussing game elements.
Interface - We have almost completed the new and final GUI
Graphics - We've completed a very large amount of overworld tiles. We've also covered a small amount of interior tiles that should be enough for most houses for open alpha. Although sprites aren't our currently priority, we have all the basis player sprites done, except for female which we will start soon. We also got a few monsters done/almost done for open-alpha. We have little items done, and plan to redo most that were in closed alpha. (they were mostly for testing)
Programming - The base of the engine has been completed for some time. We are working on a few slightly more advanced features, and also better optimization.
I'll update the main post with some extra screenshots or previews.