At the risk of being a re-poster, the folks at Ten Ton Hammer have posted 17 minutes of video interview/preview/fun in the Demo room at E3 with Rusty and crew at FLS. Go here. The audio is abysmal but if you can bear with it, you can see what the game looks and plays like.
Even with the grainy video and hard-to-hear audio, the game looks great and looks like its getting close to fully baked. The world looks great and from what I can tell, combat and animations appear very smooth. The best news of all, Rusty said they would be expanding beta by about a factor of 5 in the next week or so. Now that they’ve got their distribution deal with SoE its looking like full speed ahead for PotBS. Very much looking forward to getting a look at this game.