The company has a website, here:
http://www.privateerindustries.com/
Latest update on their development blog was in December 2010, when they seemed to be making good progress, aside from some interesting spelling/proof-reading issues (hydrolic vice hydraulic, for example).
As for the engine, they mention a September visit to Diemech Turbines in Florida to see their 601 engine run on a test stand. Diemech specializes in overhauls, so I'm guessing this is a rebuild. That seems sensible for a start-up aircraft builder on a fairly limited budget.