Added more sounds and graphical effects today, along with the first bits of the damage system. The sound system has been upgraded to overlay firing sounds and the like using alternating channels. This makes the weapons fire sound much better.
The glow effects are looking pretty nice on the enemy shots. Just need to rework the ship models and brighten everything up somewhat.
I've uploaded a first video to YouTube:
(note that this is still a work in progress and will change quite a lot before release)