Okay, so I've been away from the forums for a bit. Here's what's up.
I'm almost done with the kong version. This took a lot of testing, but I've finally fixed it up so that it handles everything correctly. This was tricky because I'm dealing with backwards compatibility for a legacy version of the game that is already deployed and which I can't change. Whatever file format we were using back then I have to be able to read correctly and not cause any problems with.
The hardest thing to do is to set up a legitimate test case. Flash segregates flash cookies by the location and filename of the original swf, so if I upload a new unpublished "preview" version to kongregate for bug-testing, that is obviously stored at a different location than the actual live game. So, I downloaded the game from kongregate and ran it locally, then hot-swapped the swf with the new kong build, and tested it.
Of course, then if I'm testing locally I can't test whether the kongregate API works, so I wrote a KongregateSpoofer object that mimics the API's inputs and outputs. So, that took some time to figure out. After all the testing, I found a lot of bugs that would have likely caused problems, and now I'm confident it's ready to be uploaded. I'm ready to pull the trigger on Kongregate tomorrow once I run final tests tonight.
Which brings me to:
New Kongregate stuffKongregate has been an enormous help for us. According to our stats, 95% of our sales (at least) have originated from Kongregate, whether that's through driving traffic directly to our store's "buy" page or through kreds purchases. Without Kongregate, this game would have been a financial bomb for us.
So, while we're waiting on Steam (the paperwork is taking a *really* long time), I'm going to see if I can get Kongregate to give us another front-page promotion. To that end, we've expanded the demo version for kongregate players. So, whereas before you could only play through acts I & II, if you are a registered kongregate user you'll now be able to play through act IV, ending right before you get the dragon.
Most of this isn't going to be of any interest to those of you who already have the full game, of course. This is just what I've been up to 
Hopefully having a registration incentive like that will encourage Kong to give us another front-page feature, and also offset negative feedback from raising the game's price to 100 kreds from 50. Technically this is still slightly cheaper than the regular version - 100 kreds is $9 and change - I'm not sure what the exact exchange rate is.
The kongregate version will still be using compressed art and audio assets, there's simply no way around that. It will also be a pretty big download, as the client size has increased and it has to fetch some assets to preload. So, people on slow connections might have to wait a bit, but there's simply no other way to do it without gutting the game.
Finally, a common request we get is from people who bought the game on kongregate and want to upgrade to the download version. In the past the way we've handled this is to individually give out $5-off discount coupons (roughly equivalent to the 50 kreds paid on Kongregate), back when the game still cost $7. As we're a small team, it's hard to handle these requests manually, I think we might *still* have a backlog of these requests (if you're still waiting I'm sorry!). Our ability to do things like this moving forward depends on us figuring out an automated solution.
So, now that the price on Kongregate will more or less match the price on our site, in a perfect world I'd *like* to give people a free copy of the downloadable version, but the issue is how do we do that in a way that doesn't involve me manually answering hundreds of emails. I've got an idea for something we can try, but I'm going to hold back on promising anything until I can see if it will work. If we can't think of an easy solution, then the kong version and the download version will be two separate "products" - owning one copy doesn't get you the other. If this idea of mine does work, however, then chocolate ponies will fall from the sky and we'll all dance around on rainbows.