I'm glad this has gotten so many responses. Now to answer some questions and fill in some details.
Firstly, the Fog of War addition is of course completely optional and disabled by default. I've wanted to do this for a while to bring back some of the mystery and urge to explore that the hi-res took away by allowing you to see a much larger area at once.
Now to what you can see and what you can't..
Floor, walls and scenery are always visible but darkened until discovery, you can adjust how dark they appear in the ini. All other object types are invisible until discovery, so you wont know what useful items are in a room until you walk into it or peak through a window. You also wont be able to interact with anything using the mouse that hasn't been discovered.
There is also a light version of the mod which allow normal lighting for floors, walls and scenery and allows you to view their details with the mouse. But still leaves other objects invisible until discovery.
In combat you no longer see critters beyond your LOS (yellow highlighted), party members are always visible though.
@ kungfujoe: I might take a look at party member LOS during combat, I think it would cause problems during normal play. Also I just tried out sfall's party control mod and it seemed to work reasonably well, (no less buggy than usual) with the visibility of stuff changing depending on the selected party member.
As for when the next release will be. I still have a bunch of small stuff to do (tweaks and such) and there are a couple of bigger things I'd like to try to include that I won't mention at this point due to their lack of development. Ideally I'd like to get it out before the end of Winter(Summer for all you Northerners).