I noticed the news about this on a different forum, and i'm psyched about trying it out. Is there a website we can follow the status of this build until it reaches a full release? Does everything work for this like the Guardian's speech in the intro and in game? Last port of this I saw was for the PSP and I knew it would be a pain to play on such a small screen. (But ironically i'm playing 'Indiana Jones and the Fate of Atlantis' running on a dos emulator on my DS.....but it works with full speech so it's worth it!) lol.
I still have a sealed copy of Ultima3 (with advertisement sticker), and a complete copy of ultima 5 for C64 that I picked up at a used software store a few years back for $7 total.

I think somebody's game stash got taken away or went through and sold for a few bucks. Guess they never heard of ebay at the time!
You can try to look at my svn updates on google code, but I forget to add notes when I make changes a lot which makes it kind of boring to watch :\ sorry I don't blog.
The guardian speech works, the music works, sound fx like doors opening/closing, birds etc aren't working yet. And the inventory bug will make it hard to play. I love Ultima too, and have bought the trilogies, and the collection cd's as well as a few of the originals when they released.
They don't make games like they used to which in some ways is good, but not if you would rather have a great story over a wet-plastic look.