1up has the preview, although there's not much to report.
I still have yet to complete Episode II because it is so painful to play. The combat and leveling systems are just abysmal. Who the hell wants to waste a dozen turns just to create one attack that feels barely stronger than the attacks you wasted? As for leveling...nothing seems to make the characters distinct.
I almost want to just wait for Xenosaga Episodes I & II to come out for the DS and try playing the game that way. It's unfortunate that I'll be reduced to 2D cartoon graphics, but the story is what's important in this game. Maybe getting a rundown of Episode I's story wouldn't be so bad (aside from the long bonus DVD that came with Episode II).
Is it just me, or does remembering Xenogears make it extremely unfortunate that this series was not done by the masters at Square-Enix? Hopefully Monolith will redeem themselves with this early closure of the series.