There hasn't been much, unfortunately. It's hard to believe I started this project a year and a half ago... the job I got in April 2008 has been extremely demanding of my time (50+ hour weeks every week). It's looking like that might change soon, but it also might not. Regardless, this project is still of great interest to me, and I do poke at it from time to time. Most recently I've been fleshing out the format for map files.
Also, some recent events have bothered me quite a bit:
http://crimsonechoes.com/Crimson Echoes didn't even have the ability to play the original game -- it was basically a ROM hack of CT with a completely new quest written from scratch. Clearly, Square doesn't look kindly on these kinds of projects.
In light of this, I've been considering NOT including the ability to generate a quest by ripping the original graphics/maps/etc. from the NES ROM. Unfortunately, I think this will greatly diminish the interest in the game, especially because I think just about every FF fan with time and creativity would love to hack around in the quest editor and do their own spin on FF1. There are already generic make-your-own-RPG engines out there -- the point of this project was to use the interest in the original game as a basis for a community, much like Zelda Classic. It worries me to release the game without a good, solid, recognizable quest -- if there isn't great content, people won't be interested, and if people aren't interested, they won't create their own great content. It's kind of a chicken-and-egg scenario, and having an FF1-like quest was going to be the egg.