As you may recall from this post, The Mesh Deformer Project reached full funding around the end of October. Well today there was some activity and statements issued by both Maxwell Graf and Karl Stiefvater concerning the project going forward.
Karl stated in his Metareality Podcast that Linden Lab and Karl have been in discussions concerning the implementation of the Deformer into the Offical LL viewer. It seem there is a high level of cooperation and some design specs are being passed back and forth at this time.
Maxwell also updated the Project Page with a statement concerning the latest developments. It was also revealed by Maxwell in-world that the roughly-esitmated development time was 3-4 weeks, barring unforseen problems. Very exciting news!