PGS have made a project update, too long to fully quote, and it's worth a read. But here are some highlights
They claim the XPphone guys who were building the PGS, scammed them. So in search of another manufacturer, all but one told them it was not possible and rejected them. But in the end they supposedly found a group who will do it. They name them in the update.
They claim they have raised $1.6 Million so far in pre-orders. They also say that if anyone wants a refund , they will honor it.
They also listed a number of specs that will change
Anyway, here is the bit about XPphone
"XpPhone developers failure
Entering the ranks of PGS each of us realized that the development of the most advanced portable device in the world is an extremely difficult task even for teams with vast experience and an almost infinite resource base, not to mention us. But we did not expect that it would be so difficult to push the industry forward.
After a long search for a developer team we chose guys who had created XpPhone and XpPhone 2 - and that was a big mistake. Those people turned out to be scammers. They kept giving us false reports for several months in a row, creating the illusion of active work on our product, but the truth revealed: they tried to create their own product using our resources. Fortunately, they had lack of professionalism, and the common sense helped us suspect and investigate the case. A long court trial against the scammers is going to take place, but we didn't get upset, and full of determination we continued to search for skilled contract developers.
The complete PGS update: http://blog.pgslab.com/