Okay, so we broke down and got Flash. I didn't want to have to, but I did. I was saving for a PS3 and just when I had enough I used the money to get Flash CS3 instead. Kinda sucks, but at least my cartoons will look better now. Guess I'll have to save up for a PS3 some other time. Ah well.
So we've been working on redoing all the backgrounds and the characters in Flash. It's put a small delay in the release date of Hinterlands 2 but it should be worth it when it's done.
So Hinterlands is on its way. The script and the story board have been written up, most of the backgrounds have been drawn, so all that's left is to capture the voices for it, redesign the characters and then to animate it.
We've taken everyone's comments into account and episode 2 will have many of the things that were asked for: More interesting animation, less static scenes and better quality of voice capture. It'll be a big step up from episode 1.
So look for it soon!