Stage 2 is about half done now, but it is progressing slower than hoped, mostly due to having a million other non game related stuff to deal with. I have 3 big projects going on, and the probably most important one doesn't seem to be going all too well. Didn't know it would be that difficult to make a FGPA board create some sound.
A break is coming up soon though, so that should probably help a little.
Added a few new enemies to stage 2, and I guess it's starting to look more and more similar to gradius rather than zero wing, but I can live with that, seeing as the gradius sprites are better suited for the purpose (and easier to find) anyway.
Also, I could still use some testing for stage 1, in terms of lag and difficulty. Only had one person testing it so far, and would be nice for some second oppinions as well. The video shows the first stage of the game and probably gives a better feel of how the game is going to be.