as for 1.1, what cyanide said. ever since the last alpha test release over a year ago it's been quiet.
So, we must assume what you say in your signature...
mugen has hit a snag and is on hold.

Personally I was hoping they would say something, show some progress by January 18th, considering that day would be one full year with 1.0 being out. However, if I recall correctly that day there was a lot of protests around due to SOPA and PIPA. Maybe they preferred to remain silent that day because of that? I don't know.
I was expecting them to do something in February or March, but nothing. Frankly, I would at least have expected them to post something, but VirtualTek told me they're not active, and your signature seems to confirm it.
The main problem is understanding why elecbyte has released a Mugen 1.0 (version 1.0, and fully functional in regard to the HD resolutions) even when nothing is complete.
Some things are actually complete. The only reasons I migrated to 1.0 was stuff like AIlevel, and I was hoping they would at least fix all the bugs for 1.0. Certainly, I was expecting them to fix the bugs that are preventing my projects from working correctly.
Let me explain.
It should be a version 0.7b since the resolution with HD hardware acceleration is not yet fully supported.
HD is supported and works, but by software. hardware acceleration was to be brought with MUGEN 1.1, thus you can't say it should be a 0.7b version.
I do not think that will do exactly as Elecbyte in 2002? That is, once again leaving the scene of mugen? ç_ç
I pray they're not. I hope story will NOT repeat itself with the incomplete MUGEN 1.1 being leaked the same way WinMugen was leaked and Elecbyte disappeared. I really hope they come back soon.
They have been in a hurry to release version 1.0. Why?
I love it when a program reaches the perfection and completion ... but ...
For a year now, elecbyte has created a rift between those who are using the winmugen plus and those who use the mugen 1.0.
I speak of support for winmugen characters.
I don't know why you say this. MUGEN 1.0 has backwards compatibility. Most chars work correctly or require minimal fixes to work in 1.0. Also, about the resolution issue... I can play well at 1280x720 (GameWidth = 1280 GameHeight = 720) and I have a far older and less powerful machine than yours (Pentium D 2.66 Ghz, 2GB DDR2 RAM, Nvidia 9500GT, Windows XP.)
In fact, some authors do not update anymore their old characters.
I've been using the Winmugen Plus, what benefit can I have in use the mugen 1.0 at 640x480? Why should I convert stages / motif / chars for Mugen 1.0, if that does not fully support the HD (talk about for obtain stable 60fps)?
Currently, I am user of winmugen plus, and atm I only suffered a decline of upgrades for characters. (Rajaa, Pots, Kohaku).
I must concede that my upgrade of N-Mario's Vent&Aile to 1.0 was a bit lame, but not because of me, yet because of MUGEN 1.0 having lost the freqmul parameter functionality, that's why I kept them compatible with both WinMugen and MUGEN 1.0 and I cannot upload to my site the final version which is for 1.0 only. The bugs in 1.0 remain as a constant problem for my projects.
Why, elecbyte not complete the software to make everyone happy? has been almost a year without updates.
Please ... give us some information ç___ç
Note: My english sux...so forgot this xD - Google translate ftw <.<
Uh? it seems Google translator is now translating at least decent readable things

Anyways... *sigh* we can only hope they will come back from their long silence and this time bringing MUGEN 1.1 beta with most if not all the bugs fixed for good.