Rather than tag this on the end of 38 pages, here is the latest official info from the .com forum:

SenseiTW Medieval II Update 2 - Latest News Lead [-]

Administrator/Administrator
Posts: 222
04/12/07 05:39:17
CA Staff
Tags : None
Hi guys,

We have had a chat with the development team at CA Oz and can now bring you an update regarding the status of Update 2. As previously discussed, there were issues highlighted by final testing that require further attention. The issues have been identified and the process to rectify them is underway at CA Oz. Rest assured that all resources are now being devoted to this as a matter of priority.

The main issue to be addressed is the intermittent passive AI that occurs during siege battles. While this certainly isn't something that occurs in every battle, it needs to be rectified before final release. There are also a number of minor issues that have also been highlighted and will be addressed.

Please accept our sincere apologies for not providing information on progress before now. Being on the other side of the world from our development studio meant that we couldn't bring you up to date on this as soon as we'd like. Based on the rather unfortunate turn of events last week, we feel it would be unwise to provide any further estimation of release dates for Update 2. However, we promise to keep you informed on progress throughout the process of getting this update to you.

Thanks for your ongoing patience. The team are obviously very busy on this, but I will keep pestering them for updates on your behalf!

Cheers,
Mark O'Connell
(aka SenseiTW)