I haven't heard anything about it in a long time.

I thought it was supposed to be coming out this year?

Apparently
http://openmw.org/en/.


Dunno about full release though.

The project still going in a strong pace. Recently they turned from Ogre3d engine to OSG, and the results are spectacular. Greater FPS outdoors.

Two days ago Scrawl (one of the main developers) started to work in a native mesh format to replace the nif files. Now it is a reality!

http://bugs.openmw.org/issues/2885#change-13758

If you'd like to test the latest nightlies look here http://www.lysator.liu.se/~ace/OpenMW/

The forum http://forum.openmw.org/

To keep look at the daily changes and additions. http://bugs.openmw.org/projects/openmw/activity