spoken and yes, work has begun on the project but we've hit a bit of a roadblock...
The translator, Rock X has dropped out of the project for the time being due to other, more important personal obligations. As such, the translation patch is on hiatus. He doesn't know for sure when he'll be able to resume, but if things progress smoothly for him, the patch should be complete by late summer of 2011.
Unfortunately, Rock X didn't make much progress before he had to stop, only getting around to ripping the English script from the original MMBN1 (which, in order to save time, would act as the source material for the translation). OSS itself hasn't been touched yet, unfortunately.
In the meantime, Rock X encourages other fans capable of patching the game themselves to not "wait for him." In other words, if you've go the resources to create an English patch of your own, by all means do so. You'll probably have it finished long before his patch.
I will be keeping you posted should things pick up again, however. And if you're working on a patch yourself, contact me and I'll get to "promoting" it.