when is this coming out? been a while since the last post, and what discourages me even more, it was done by Insani 

It's still coming- But I have slowed down on it unfortunately.

GREAT SUCCESS!

...Expect it finished in 2013-14-ish. Why? Why indeed.
(Don't worry, it's coming. Still tweaking things, though.)

Wait, no Commander Video? Or Jill? Or... or...

Well, I was mainly focusing on SMB original characters... BUT... But, I was thinking about Commander Video , considering I like the Bit.Trip games (Don't like the PC port BEAT, I want to get the others on Wii, but it's modded and I don't have the money currently for WiiWare.)
It's still possible for other characters, but don't hold your breath. If it happens it happens, if not, then not.

http://www.garrysmod.org/downloads/?a=view&id=119153

Well, looks like someone beat you to it. D:

OH MY FUCKING GAWD I HAVE BEEN WAITING SO LONG FOR THAT

NooooooOOO! My one shot at semi-something, maybe just a little but still amounts to something in the end fame! Well, I'm not too bummed. I've been lazy about the project (But have still been working on it), but regardless... I'm still going to finish mine. Plus mine still has Dr. Fetus! 
I have yet to use his, but they don't seem as complex as mine, at least from the screenshots. Still, I could learn something from these.... *Evil laugh*

Wait, no Commander Video? Or Jill? Or... or...

Well, I was mainly focusing on SMB original characters... BUT... But, I was thinking about Commander Video , considering I like the Bit.Trip games (Don't like the PC port BEAT, I want to get the others on Wii, but it's modded and I don't have the money currently for WiiWare.)
It's still possible for other characters, but don't hold your breath. If it happens it happens, if not, then not.

What program do you use? Just wondering.

As every poor man, Blender of course! I use Blender 2.56 for modeling purposes, Gimp 2.6 for image/texture editing, and anything else lying around when I need it. Primarily I focus on Open Source programs (for both that they are free to use and not requiring a license, and the active development and openness.) For Source, I use the SMD import tools (now an add-on for Blender) and standard development tools Source games come with (Source SDK). I haven't had a chance to really use my small knowledge to create something fully, but SMB looked like a neat project to tackle.
Here's a small pic of Meat Boy. You may notice the hands are a little weird looking, that's because I'm having such problems UV mapping him properly. The texture is also a work in progress. He's taking longer than I thought.

Where are you? Did team meat hire someone to kill you?

...55...56...57..5- Oh, a beat! Heh, I'm still ticking! All's well here. But these people wearing black and red suits keep shooting up the place. Saying something along the lines "Your dead... Ja..gen... Whada' tink Meat's paying us for this job, ya lazy bum! Kill him!"
Luckily, they are very bad hitmen.
But to the point, Still working on it. Messing with Source materials, rigging, restructuring areas I didn't do well. Here's Meat Boy rigged (Not finished) I'm finishing up the left side to create an equal rig on both sides. Then Dr. Fetus, then, well, starting Bandage Girl, and Brownie, and then finally Tofu Boy. I'm still wondering how to go about facial animations (considering the material, I don't want to use Faceposer, but rather, I want to use alternate models (think shape keys in Blender, or sub models in source) to animate different features of the face (eye's blinking, mouth movements) Also, for Garry's Mod, I want to go about a way for Meat Boy to splash blood textures and stuff on walls and floors like in the game. It'll obviously be temporary compared to SMB way of doing things, but it'd be a neat touch. I also have two new pictures of Meat Boy on my Steam account.

What program do you use? Just wondering.

As every poor man, Blender of course! I use Blender 2.56 for modeling purposes, Gimp 2.6 for image/texture editing, and anything else lying around when I need it. Primarily I focus on Open Source programs (for both that they are free to use and not requiring a license, and the active development and openness.) For Source, I use the SMD import tools (now an add-on for Blender) and standard development tools Source games come with (Source SDK). I haven't had a chance to really use my small knowledge to create something fully, but SMB looked like a neat project to tackle.
Here's a small pic of Meat Boy. You may notice the hands are a little weird looking, that's because I'm having such problems UV mapping him properly. The texture is also a work in progress. He's taking longer than I thought.

cant you just release a beta dr fetus model? so i can use it on gmod?

o yea, i suck at spawnlists and stuff, can u do that too?

Eh, I'll try... Once I get Meat Boy done to an extent, I'll release Gmod models (Hope to have them rigged, though.)
Also, I forgot to mention. I was testing out the new screenshot beta update with Garry's Mod. All shots show my current Dr. Fetus model (Again, not rigged- a t-pose statue) If you want to see them click here.
Honestly, I was messing around- so the pictures kinda suck. I'm trying to get a rimlight on the Glass, But I cannot get it to work as of now (to make the glass more pronounced/visible)

A small preview...
Yeah, I made this pretty hastily. A LOT of things aren't final (the missing tooth/black eye/band-aid on his forehead. Also, he has a body, I just didn't feel like showing off the rest of the body. Got to texture him though.
Fun fact: the teeth and his hands are "stolen". The hands are modified Dr. Fetus body suit hands, and the teeth I didn't even model! They are from a program (MakeHuman) which auto generates human meshes. I made a "fat" model, and ripped the teeth. The gums I modeled though. Had to make a lot of modifications, though.
  Also... As this is a "fan stuff" forum, I've decided I'm probably gonna stop showing updates here until my stuff is complete or close to. I'll make a new thread or something. 

F**K! YES! Finally! ... No, I'm not done... sorry- but I have good news! ...Kinda. I've finished the model as well as the UV map and pretty much all texturing. But I've been trying for the past two days to compile the model for Garry's Mod. It goes through, but I had no idea I had to use vertex groups to define materials. For something so simple, it was a bitch, a REAL bitch. Here's a quick snap in Model Viewer. ...Oh, don't worry, the Fetus is there this time! I really started to cut corners here, but I like this one. Here's a snap in Blender. Yeah, as you may have noticed, I didn't really add texture to him. I may later though.
What do you think? I'm gonna rig him soon (that's gonna hurt) and I'm planning to start Meat Boy soon.

Another update.
Well... UV mapping (of which I know little other than really basic stuff) is mostly done with the exception of possible future edits. And DAMN it was annoying. However... Texturing was an absolute delight!  It's weird, I don't texture much, but this was mostly easy and fun to watch my results. Not done mind you. One reason is I finally got an account on CGtextures which gives me free textures to work with (not a premium member mind you). This is probably where my work could get a little divided. Not much, but my texturing focus is rather surrealistically focused. What I mean is that my model- eh, screw it. Just think of Super Smash Brothers Brawl and you'll get my meaning. I just think that considering my original renders used flat colors. Also. one more thing. Again, my textures aren't finished- but I tested normal mapping my model with the current texture I have (converted to an RGB normal map) and I rather like it. I changed the shader to help benefit it (normal maps) while keeping the 'toon' feel. Comparison time!

Normal maps
No Normal maps

...Daymn. That was a mouth full. I talk too much. 

Dude that's awesome! Why has no one thought of this before?

Someone did a long time ago on Twitter, even his account name is DrMeatBoy.

I have been defeated.

...Though weird I never thought of it.

Dude that's awesome! Why has no one thought of this before?

Sorry to break up the L4D-SMB mash-up but I have a small update. Here's a quick comparison between UV and rendered

UV
Render

Small model updates/fixes, new texture for the jar/container (small bug you can't really see here) and he's mostly UV mapped for texture mapping.
NOW for textures.

More characters? Sweet. I can only imagine playing L4D2 with MeatBoy, DrFetus, BGirl and Brownie as a team.

...You just Blew my mind! 
...Sucks though, you'll have to get someone else to convert it for mods. (Again, I'll give the source files... but that person is probably have to tinker with it in order to get any desirable results. Considering the mod focus of source games- there has to be someone who'll do it)

...But Dr. Fetus HAS to be Nick. 

I really like the look of it, but that smile... It unsettles me. I mean, she's happy, but she's REALLY happy. Regardless, it's an excellent drawing. Kinda weird mistaking a gauze made girl with a rabbit.