Sorry about the delay, this should have gone out yesterday really. Still, better 24 hours late than never.
There's been some great developments in the models and textures for milestone 1, you can view the original post for more information, but I've also dropped the first renders into an imgur album for convenience.
There's also been a few developments within Sigma (Adam's framework that may be used for Trillek), such as the addition of 3D mouse support.
You can also look forward to the release of the first milestone within the next couple of weeks (around the 15th). This was discussed in the previous status updates and it's design document.
We'll keep you posted as we draw closer to our first milestone.