We are still working on BlastWave 2. Over the last 4 days or so we have progressed quite far:
As can be seen by the screeny we have added many of the characters (tho they need some touching up still) and have added some scenery elements. On the code side I have been playing around with the physics provided by Box2D.
The screenshot doesnt give a full impression but Oliver and I are getting excited about how nice this looks and feels when you are flinging the objects all over the place.
Expect more updates over the coming days / weeks.