Hmm...

This is something many people have asked before.

It looks like at least part of the Team is still working on it, and there are still a number of beta testers involved.
So it looks like work is continuing (at a rather slow pace).

My last info's are, that OpenGL is making advances, yet Direct3D is still sort of a Problem child in some way.
(but don't quote me on that, as I'm not involved in any way)

Maybe you find a Link interesting that I found over at the x3dfx Forums :
Norm (former 3dhq Forum member) has prepared and maintains a small info Page about the Driver work.

Link : http://www.voodooalert.de/

On the very bottom on the left of the Page, you'll find bi-lingual (English/German) Info's...

Every small article is linked to their Forums (the small "more..." Links), where he's still active, so you should be able to get answers to your questions in the corresponding VoodooAlert.de Forums.

Greetings
FalconFly