I hope this is just temporary because I really want to see Part 3! Both Part 1 and Part 2 videos have been pulled from YouTube. For updates, and what I believe is their new FB page, please click here.
I guess I'm a little late hearing this news as Memo from RobotechX has a post on January 22nd stating this project has come to a halt.
I think the image below (posted on the Robotech Valkyrie Project page) just about sums it up.