OId thread (which 404'd as I was in the process of writing a post): >>19820279 (also on suptg)
Quick recap: We've decided on the base mechanics for the system. It will be a d6 dice pool, where each die showing 4 or higher is a success. Size of your pool is determined by your relevant attribute (Strength, Agility, Wits, Mysticism, or Guts), skill (Melee Weapons, Heavy Weapons, Ranged Weapons, Shields, Spellcraft, Instruments, Tools, Acrobatics, Athletics, Riding, Stealth, Perception, Survival, Lore, and tentatively Presence), and Triforce virtue (Power, Wisdom, or Courage). Each of these categories can go up to 3, and racial bonuses can add 1 additional dice to the pool for certain actions, for a maximum dice pool of 10.
We're considering the idea of making the system XP-less; to improve your attributes, skills, or virtues, you'd need to accomplish some kind of in-game task (eg, find a hidden Great Fairy's cave to receive a blessing, or perform a quest for a master swordsman in exchange for training), rather than simply spending XP.
Weapons will deal damage ranging from 1/4 heart to a full heart (or perhaps even more for Heavy weapons), and we're also leaning toward weapons having different effects for extra successes on the attack roll, based on which of a handful of categories the weapon falls into. Current ideas for categories are Finesse, Stunning, Forceful, Grasping, and Defensive.