Status of the Kyra engine
The current Kyrandia engine in the ScummVM CVS is capable of the basic graphics and rendering functions, the main incomplete component is the script interpreter and opcodes. It was reverse-engineering and is based in part on the [FreeKyra] engine.
This is a HELP NEEDED engine, with nobody officially working on any reverse engineering efforts.
Status of the Source Release
Negotiations for the release of the source to Kyrandia (and possible freeware release) have been conducted with Electronic Arts LA. Unfortunately, due to various other issues at that studio, the project was shelved.
Recently (15 Apr 05) the major stumble with the source code release was determined to be a pre-existing contract with another party governing such issues. EALA is not currently in any position to work further on untangling a rather nasty web of sales an d transfers, and cannot chance infringing on the contract.
The current outlook does not look good, given that nobody contacted claims to have the rights, and obtaining a legal outcome to that effect would be impossible for a project like ScummVM. There will be continuing investigation into this issue, however.