HumanHead's Mike Werckle updated his .plan with details on the screenshots from Rune that have been popping up on various sites (including these), as well as a general status report on the game:

Currently, Tim and Paul are at ECTS in London showing off the newly redone Ragnar. This one is a vast improvement over the one we showed a month ago at GenCon. His mesh is far improved, to make him look bigger and show more detail, and his animations are much more polished as well. Also of note: Ragnar now has the long, flowing hair that a Viking of his type needs in order to be cool. And I also put in extra bones in his shoulders in order deform his arms better. With so much sword swinging in this game, Ragnar needs to have very flexible, good looking arms.

Also in the screenshots and the ECTS demo you will see Jeff and Paul's super cool Goblins. They hold axes or shields, chatter and jump around, and when you try to attack them they hold up their shields, or jump out of the way of you swing. A very impressive animation and AI job on these guys. The coolest thing is when you chop off both of their arms, they try as hard as they can to stay away from you, as if they are scared. Also notice that the goblins all look slightly different. Because of the skeletal system you will be hard pressed to encounter two that look exactly the same at the same time.

Jim's gorgeous levels are now starting to be populated with super cool stuff! In addition to the goblins, there are now bubbling and belching pits of mud, realistic falling boulders and even an underground geyser. This is the part of the game where Ragnar is moving out of the deep sea caves into an area of seismic activity...