I'm VERY interested in this, it works surprisingly well, especially on the things I didn't expect it to (construct games work! woo!) the frame rate is a little slower thant I would have liked (around 30fps), but I can't complain otherwise.
one thing I would really like: Is it possible we could allow certain colors to show as transparent on prims/meshes? I know people are going to say 'THIS WILL BE USED IN GRIEFING" but it would open up endless possibilities for creative things . for example, shooting galleries that could have targets on many layers, or floating holigrams that use html code to change the display like in star wars; none of which would cause server lag if used properly. if I were to have that, I could make multi-layered pinball tables that worked!
I wouldn't hold off the release of project valhalla if it didn't come out or anything, but if it was at all possible, I would love to see it!