Good news, the core engine is almost complete!
The framework for the combat engine is now implemented. Now it's just a matter of filling it out with all the complex stuff, like calculating damage and dynamically changing who's attacking and defending.
In other news, a side project that will be out soon is an Airsoft-themed puzzle game created in Flash!
Named "Airsoft: Puzzle Combat," you play a series of progressively more difficult puzzles to try and get the highest score you can.
It will be available in a few weeks!