As far as I'm aware, the project is still going.
As for 85k being a lot of money... that's actually too little. For comparison, a full time game programmer expect usually to make in the 50-60k range, starting. So 85k over 2 people over 2 years... isn't enough.
Arguably, this is one component of why games tend to be rather buggy. They simply can't hire the best coders, who easily ask for 100k+ salaries, and have to compete with the likes of Wall St, Silicon Valley, and then all the midrange stuff (Oracle, Microsoft, many hardware companies, medical companies and so forth). Either game companies are going to have to start paying more or doing a better job of attracting people to them, and that will be hard given how little people are willing to pay for games (relative to other software, most other software costs 10x as much as games, either in direct sale price, or in service price).
The main thing with these kind of projects is not to get them done. It really isn't. It is to demonstrate you can organize such a thing to begin with, which surprisingly is hard, both in initial setup and sticking to it. My own project led to me getting my current job, because it demonstrated I had the persistence to see a project through, regardless of other circumstances (in case I have not stated this before, I work on Night of the Dead and currently we are doing its sequel NOTD 2).