Army Men Online will still be worked on meanwhile, matter of fact I've already gotten the core game play mechanics so hopefully I can get some progress posted soon, despite what the video or others suggests, but we want to get the IP situation settled before AMO's release. The last thing NE wants is to waste time on a game that has little to no player-base and empty servers.
Army Men III will resume production after AMO reaches it's open-beta phase.
Meanwhile, I'd still suggest staying in the group, even if you are a fan of Army Men Online as it will be used to post news on that game as well.
Also check out the Neotl Empire group. it's made for all things related to our team and future works beyond Army Men Extended.
After 2 years, Beta 1.2 is finally released! Because Unreal Engine 4 is now free (and the anti-mod support barrier is removed), this will be the last release using UDK as we are currently migrating to Unreal Engine 4. UE4 provides much better opportunities that are otherwise impossible or very hard to achieve in UDK (unless I buy the UE3 license and get the full source code).