It hasn't. We are devoting much of our time to UdutuTeach & Learn at the moment - primarily laying the groundwork for making it available for other social networks than Facebook. The remainder is being spent on preparing myUdutu for internationalization (making it available in other languages than English). Once that is done (1st week of September), we will likely be working on some custom features for myUdutu that will allow authors to create custom templates. Once THAT is done, we'll be finishing Section 508. It's taken us quite a while to get to it, but a number of other things have come up (including the development and release of a new product) and people haven't really been clamouring for it until recently.
We'll get it done before much longer, though. It's a priority, and we reallize that for many of our users myUdutu won't be an option without Section 508 compliance before long.