>>25
He 'finished' it, taking more time than expected, and it ended up being amazingly underwhelming (compared to how much Graham hyped it). IIRC, it's just a bunch of superficial syntax crap and some libraries on top on MzScheme, and it's not really even finished. I think after that, everyone just kind of forgot about, except for a really small community on a HN-style board.
If you're still interested, you can find a bunch of the Arc community at
http://www.thearc.org/