What exactly is this XM unit I keep hearing about?
Enlighten me Trek.

This looks and sounds awesome!!!!! 

The XM is the 7800 eXpansion Module, it plugs into the catridge slot on the 7800 and gives it better sound, more ram and has high score cartridge support built in. It will also allow to attach a keyboard to the 7800 for more advanced features.

This has been made to match the specifications of the one Atari planned to release for the 7800 back in the day that was scrapped due to the take over of Atari by the Tramiels.

What exactly is this XM unit I keep hearing about?
Enlighten me Trek.

I will.  I'll create a separate thread about it.  But the short version, it is an expansion unit that is being developed that includes POKEY, Yamaha sound, extra memory, etc.  These are things that some carts had added (for example, Commando) to enhance system capabilities and provide better games.  The XM allows that by eliminating the need for additional hardware in carts. 

Looks really good!

There has been an update to this game that has made further improvements to the graphics, specifically, the scores, the timer, lives left, and Pauline's location.  Take a look...

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Looks superb! 

What's a POKEY?

(Looks fantastic)

What's a POKEY?

(Looks fantastic)

The sound chip that is used in the Atari 8-bit computers, 5200 and in some 7800 games. It will also be in the new 7800 Expansion Module.

Ah.  Thanks for the info.

Great screenshots!

Progress on this port has continued moving along and the game is as close to the arcade as it can be.  Here is an update that Tep posted today in Atari Age:

I've made some nice updates to the game which I hope to upload later today.
- The smashed object graphic is correctly animated and multicolored.
- The elevator bouncer uses correct colors.
- Added "help!" graphic to Paulines animation.
- Hammer duration matches arcade and color changes at 50% time left.
- Fixed bug so Pauline is erased when DK grabs here.
- Adjusted bouncer position and collision boundry.  Might be a little too forgiving now. I'll look for feedback.

Thanks for the update Trek!