With the advent of Zaeden's 0.0.2 release, the engine code is up to 1.02 and is functional enough for someone to quickly make a video game based on it.
The game hasn't got very far, I've been working on the underlying engine. I did the background system, so now in 10 lines or less a person could theoretically create a simple RPG game.
http://zaeden.sourceforge.net for more information.
Oh, and as always I'm recruiting. Right now the project is basically comprised of... me. Coders, artists, musicians... I need it all. If you're interested, leave a comment on this post or email email@example.com.