This is the first installment of a periodic (I don’t know the frequency yet, could be weekly or monthly, or a mixture) series on what happens around Residual ResidualVM.
First of all, if you don’t know it already, there has been some ferment recently around a project born on the forums aimed at improving the graphics quality of Grim Fandango, both improving texture quality, models and even making Grim widescreen!
You can read more about this on Johnny’s blog.
As regards the code, Einar (aka somaen) refactored the Smush code, making it more clean and maintainable. I finally implemented collision handling between actors when walking to a point. No more Manny walking through the signpost or Velasco or Glottis! Another worthy point, the savegame format changed, so if you had some saves made before the 3rd, say bye bye to them. 
(Or don’t update Residual ResidualVM.)
That’s it for now, stay tuned for the next updates!