Here is what we have I have working on for the last 2 years. The Hunted Demons Forge. We are super happy with the way it is turning out. We just announced today. Hope you guys enjoy it. http://www.joystiq.com/2010/03/15/bethesda-and-inxile-announce-hunted-the-demons-forge/
The idea sounds great, coop is always a win in my book ;) Also, the possibility to swap between characters sounds awesome. As does the revive system. Visually, the game looks great and really varied.