well my cousin and I have been working on a 3-D space shooter for a little while now and we have really started focusing on it in the last week or so. we now have a enemyship that flies around trying to fly towards you. You can fire you main cannon and the bullets collision is setup. Then today we added the ability to fire missiles and cycle through your different missiles.
Its going great and its a blast. Next we are working on a 3D sonar system for the cockpit and a "holograph" picture of your current target. As well as get more levels loaded and what not.
here are a couple screenies
More to come
P.S. we are using python and Panda 3d Game Engine