We are currently investigating reimplementing the 'Tinsel' engine, as used by Discworld 1 and 2.
Ender is organising this.
The rights situation has been resolved, and Terry Pratchett and his agent Colin Smythe have approved the source release and future freeware re-issuing of the game.
We are currently awaiting receipt of the engine source code.
The latest news (as of 11th October 2005) is that the source code has been successfully located and we are now simply waiting for it to be sorted and sent to us.
This will hopefully happen... 'shortly'. :)
(NB: As of this update, 24th April 2006, we are STILL awaiting delivery of the source code. Other efforts have been launched to locate a second copy of the code in case this keeps dragging on.)
In short, we have all the approval needed to move forward with supporting the game and making Discworld freeware. However Discworld is NOT freeware at the moment. It may be in the future, assuming all goes according to plan.
Whether the gamedata release will have a DFSG/OSI compatible license remains to be determined.