I noticed there hasn't been much news from us lately. But don't worry, we're still here and monitoring the webpage and forums.
So, what about MUGEN?
The boring and simple answer is we're working on it. Most of the work has been moving things around internally so we can start adding new things without blowing existing stuff up.
The current MUGEN 1.1 alpha was about redesigning the graphics engine. Once that was done, adding graphical effects like zooming and such were relatively simple.
The focus right now is on state controllers and triggers. A clean design in this area will definitely help with adding in and testing new and existing features. Since this is basically the core of MUGEN, it will take a while to go through and make sure everything works as expected... while squashing bugs in the process.
I'd like to say thanks again to all our users for your support. Also, thanks to all the alpha testers. It's been slow for a little while, but we're working to get more stuff for you to test. :)