No, the episode's not dead, but I've mostly been working on storyline/boss levels and levels which take place past a certain point which won't be publicly tested (I gotta leave some surprises for the final release ) but here's a quick status list thus far.

"Sharp Painful Object Land": I'd say this is mostly complete. I might tinker with it a bit, but as it stands, it's done.

"Security Breach Summit": (Nope, no more Low Gravity Labryinth) This one's basically done, and I may release it for testing soon, but it's somewhat unstable and has a nasty habit of crashing. (Probably because of the fact it uses too many animations) I'm not really sure why JJ2 thinks the level uses too many animations: it's pretty tame enemy-wise, there's no boss and not all THAT many triggers. (Oh, and if it'll shed any light on the subject, it uses Disguise's "Spacey Universe" set)

"Metamorph Ruins": Due to animation errors, I split this one into two levels. The first part is basically done, but I'm just starting on the second. It also includes what I hope is an interesting boss level.

"Generic Forest Level": In the middle of construction.

Beyond this, it's mostly planning and half-finished stuff. I'll try to get a beta up soon. (Probably of Metamorph Ruins or Security Breach Summit)