I have to wonder if Tellan decided it wasn't worth the effort in light of Star Wars revisited. If so, that's a real shame.

I was really looking forward to the project. One of the really cool things I think Tellan was planning was replacing all the SE shots from the final battle with new CG scenes that replicated the theatrical version. He was even going to use CG models that had the individual markings of each of the X-Wing fighters correctly, unlike the SE which uses Red 3 for all of the CG shots.