No, the project has not been abandoned - it's just on a hiatus as I'm busy with exams (and other pains in the butt) at the moment. Next week, I'm on my Christmas break so, if you're lucky
, I might finish work on 1.2 then. If not, you can expect it sometime late January.
1.1 Bug report: Apparently, when you get to Cloud reminiscing about when he and Sephiroth went to Nibelheim, during the battle with the dragon, Sephiroth keeps attacking himself and so it's practically impossible to get past that bit. This problem comes from a mistake in the hex editing and will be fixed in 1.2.
Temporary fix: You will have to uninstall the patch and play past that part of the game as Cloud and then reapply the patch. Either that, or skip ahead to a save game just past that point.