You missed
this thread.
They did release one version of their Morrowind mod and a patch, you can find on various Morrowind mod databases or on our file section.
Oblivion was out by the time their Morrowind mod reached it's first release, they decided to switch to creating an Ashes of Apocalypse mod for that game. Quickly after that decision, the mod team decided to develop their own independent game instead. They disappeared completely soon after that, I assume their attempts met with failure.
If you want to find out anything more concrete than that, you might have more success with the Morrowind/Oblivion modding communities; we never had all that much to do with Ashes of the Apocalypse. Perhaps some of the team members are still around those communities and could give you the full tale of what transpired.