Check the Annoucements forum for information on the new irc server. Essentially, you now should try to connect to projectwish.com on port 8067. The old server (irc.projectwish.com) will remain up and linked to the new one for as long as possible, but its connection has been flakey lately.
Also, you can use the IRC client built in to the site (http://www.projectwish.com/index.php?automodule=javairc) if you are having troubles so you can connect. It has been modified to connect to the new server.
[update]
Looks like our VPS (server we rent) doesn't allow irc, even on non-standard ports. IRC is back on irc.projectwish.com until further notice. Sorry for the inconvenience.
As far as progress goes, we have a lot of little things that are making substantial progress. I don't have the time to outline them right now, but we have some Christmas and/or Anniversary (Jan. 11, 2008) updates planned that should be exciting.
Stay tuned!