Hey Gus,
Yes! I would love your help with this mod...
From what you have shown me it looks like you have a program which uses Perlin noise, a feature I have been meaning to add to the mod (correct me if I am wrong).
Currently the mod just uses a basic 3d sin function to generate the map, hence the unnatural looking terrain.
I am planning on updating the mod, I just have not had time due to my school work (I am a freshman in collage). I will probably update it in about a month, when finals are over. I will then be able to send you the source code so you can help with it.... I cannot send it at the moment as I am on vacation but if you want the code I can send it to you by Monday (unless you want to wait until it is updated for the new Minecraft release. I will do a lot more work on the mod over winter break hopefully.
If you send me the terrain generation code I could probably make it work with Minecraft fairly fast, or you can do it yourself after I send you the source code.
The bulk of the mod that needs to be done is the item creation, creature creation, block creation, and villager trading. The part I am not yet sure how to do is the creation and programming of the sand worm mob. It needs to be segmented and I am unsure of how to program that inside the Minecraft environment.
Feel free to come up with ideas, you might want to join the google group on the site I mentioned (the join the discussion thing). I'll be able to answer questions better when I'm back from vacation.
Thank you,
Nathan Owen