At the moment, development's completely all over the place; we're stuck in the twilight zone between the basic engine being complete and starting work on levels, characters and sounds. There's still no character sprite, there are broken test levels scattered everywhere, and the engine has a lot of holes in it. As well as this, we've had to temporarily stop soundtrack development due to a disagreement over how to do it.
However, on the positive side, the story is almost finished, and it grows more interesting by the day. For example, Dan's going to end up skating around the surface of Pluto by about the middle of the game! My idea is that once the story is finished we will agree on a plan for finishing the rest of the game; possibly beginning by designing the character. However, this will need to be discussed when we next meet.