[Edit: I wrote this update last week, but couldn't post it before now because of Wreckamovie downtime. Sorry for the delay!]

Sorry again for the quiet spell - to balance it out, in this update I'll try to go into a bit more detail on the work we've done lately.

Progress on the latest milestone
As I've mentioned in earlier updates, for the last few months we've been working on the first proper playable parts of the game. Here's a by-no-means-complete list of features that were on the requirement list for the current version:
- Level geometry, textures, lighting and furniture for first playable areas
- Basic pathfinding code
- All needed basic and special animations that were still missing (+ some updates on old ones after testing)
- The first couple of character models & faces
- Implementing all GUI elements (e.g. interface for look/pick up/interact -actions, inventory screen, character screen, dialogue history, map, all HUD elements and the actual dialogue screen)
- Movement, controls and UI
- Camera placement and movement + player camera controls
- Loads of basic functionality, such as:
-> Skill system
-> Inventory system
-> Dialogue system
-> Underlying functionality for the save/load system
-> Containers, doors and other interactive objects in the environment
- ...and obviously a whole lot of testing and bug fixing -

Apart from a complete lack of sounds and music and a handful of bugs yet to be fixed, this milestone has been reached. It's not long yet - just the first few minutes of the Soldier campaign (or significantly less depending on your selections during the intial dialogue) - but it has certainly been an excellent testing platform on various features of the game proper, and should also provide some good material for some community testing in the future. :)

Next milestone
Now that the actual content for the previous milestone is finished, we're already hard at work on the next one. This one will be a slightly longer and overall larger demo that will feature another main character, much wider playable area and generally more content and functionality. While the first demo focused on putting together the basic movement and environmental interaction, the second one will tag on new challenges such as the combat system and advanced dialogue features as well as some more complex story arcs to test it all out with.

Work on this version is proceeding nicely - we've already got most of the basic functionality for the combat system down (moving, weapon use, basic combat AI and turn system being some of the central ones).

New screenshot
To top the update up, here's our first proper in-game screenshot! I posted an earlier low-res version in Facebook earlier when waiting for WAM to get back on its feet, but in this one you can probably get a better picture of the look of the game. The shot is from the very beginning of the Soldier storyline, right after the intro sequence.

And no, "debug skip" option won't be present in the final version. :P