Nice looking so far. The main menu and the environment look really good. The sound clips are working well too. I realize that the demo is alpha however I find that some of the menu functions are not working such as the "Options". This would be nice to have so that I could reduce the sound a bit. It would be good to have a "loading ...". When I started the demo I had a black screen for a minute or so before the main menu appeared.
Also, I found a bug in the 'game over' function area. It works fine in the first cycle - three attempts, the game over display is shown, message to 'press spacebar', and return to main menu. On the second cycle, by continuing to press the arrow keys before the game over display is shown causes the program to exit with the following message:
Error!
HUD_ObjectHitsObject
The first object does not exist
Cheers,