Darron just posted that they have actually gotten a boot screen working, which is a pretty significant milestone. As Darron noted in his post:
I can’t stress enough how important this initial boot screen is. Getting this screen in place means the basic hardware is emulated and should mean smoother sailing from here on out.
They have posted the SWF that runs the Commodore boot process. Super cool stuff which really speaks to the across the board performance improvements that ActionScript 3 and the new AVM in Flash Player 9 provide.
You can view Darron’s post here.
You can view the project’s homepage here.
You can grab the Flash Player 9 beta from here.