The new video has been out since yesterday and STILL in processing, so here's the direct link: http://www.youtube.com/watch?feature=player_embedded&...
We seem to have established a general idea for the styles of the character sprites, which should please mostly everyone: http://uboachan.net/fg/res/814.html#1042 Now we just need designs for them. Also, once Kipper finishes the last YN portrait, I'll release a new vid showing off some of the new menu stuff.
VolTRH has created some of Madotsuki's sprites. Check out the project thread and tell us what you think!
A spriter, "VolTRH", has offered his help to sprite the characters. However, we still need more volunteers. Please, if you're interested, make a post on the project thread.