God Virus was the first of several to send along a snippet from an IRC appearance by KillCreek and the Romero last night that talks of the status of Daikatana. Some checking reveals the log was legit, actually part of an interview with KillCreek by Sgt. Hulka, obviously discussing her plans to show her stuff in Playboy (story). Here's the part about Daikatana that got the attention of the attendees:

<Romero> Daikatana's doing great. Things are going well; game's gonna have a big demo in 2 weeks for PRESS ONLY.
<KillCreek> Full game for xmas. yay!

That sounds at first like it might be another demo version released to the press, but in writing back to confirm that it was really himself and KC saying those things, John elaborated a bit more on what's up with that demo, which will be a showing of the game for the press (the state of the game's development evident in his signature):

Yeah, i wrote that stuff. :)

We will have Gamespot, PC Gamer, CGW, Gamecenter, Computer Strategy Plus, Incite, Next Gen, PC Accelerator, etc. coming at the end of Sept. for a press PREVIEW of Daikatana. We're getting pretty close now.

John Romero
Ion Storm - Game Designer, Chairman
Daikatana: Whoa, it's almost finished!