It's been a little while since we last saw anything from Peter Sjostrand's Mega Man 2.5D fan game (though Gamasutra did interview the composer, Magnus ‘Souleye’ Palsson, last year), but a new update has been posted to YouTube. Check it out:
They note that this serves as a project update and shows off some development concepts, but is not representative of the final game.
Furthermore, "We've had a lot of problems with the development. Right now we're looking for more programmers to help out with the project. If you're interested or know someone who might be, feel free to contact me." If they can find some people to help, then their goal will then be to release "at least a couple" of playable co-op levels sometime this year.
If you're interested... well, no contact information is readily apparent, but leaving a comment on the video or sending a message through the YouTube channel may suffice.