From IGN:

Wada was asked to comment on reports from a while back regarding stoppage of development on the White Engine, the internal engine that's being used for Final Fantasy XIII. "Development on the White Engine has not stopped," responded Wada. He admitted that there is some feeling of unease within the company, as those using the engine to make games have not yet become accustomed with it.

I can confirm that the bit that says:

「『ホワイトエンジン』の開発は停滞していない」

means: development of the white engine is not stagnating

The paragraph after it might say something to the contrary, but I'd have to check every second word from a dictionary, and don't have time for that right now. One of our fluent/native speakers should be able to help us in no time. =P

Well then I'm waiting for some (more than 2 preferrably) Japanese speakers' translations. It seemed like desctructoid understood it. And MikeB if a gaming website providing news didn't have proficient translaters, they would've/should've failed.

Thank you for clearing that obvious rumor up. :)

Excuse me but there was a thread about U R MR GAY affecting SMG's sales, now talk about trying too hard to find anything negative...

@ gamingdevil

Please enlighten me what you are talking about?

 Thanks

But like IGN pointed out is not the engine the problem but the monkeys using it ( it seems ... ). 

destructoid is just a crappy fanboy site who hops on every bit of bad Sony news, just like you SeriousWB. Sorry but its been translated over and over. It is on character that is throwing everyone off. So get over it, sorry no bad PS3 news today. The PS3's lineup next year remains a lot better than your consoles.

BTW, destructoid was the say site crying to IGN when they changed their review of PS3 version of Assassins Creed. Even though other sites get better reviews to the PS3 version, this guy went straight to the only site that didn't, IGN, and made a story about how "ironic" it was that this game had issues on the PS3. destructoid sucks, and is desperately trying to get more hits off the fanboy stuff. Bunch of losers i tell ya.

http://www.ff-xiii.net/index.php?page=article&article=194

 Waiting for Onna e Ykoron I found this human translation on Gaf about White Engine paragraph :

Translation: In response to the question about the White Engine development being said to be stalled in recent news, [square enix ] flatly denied it, stating "The white engine's development is not stopped". "While the engine development is indeed in progress, we still need more work on the usability side. Since the engine is being developed as an engine to be shared among many projects, we still don't have the usability aspects under control. In other words, internally, we still have instability with the engine. However, this does not mean that work on the shared engine has stopped. This is an engine were doing entirely on our own, and it means we have to make it through the standard product improvement stages. Basically, we're having trouble getting this engine on it's feet.", they explained.

This game is so far in the horizon that any launch dates are highly volatile. A few weeks ago, MGS4 was a few months from being launched, now it's only getting launched in June or later... If you're waiting for games coming out in a few years, don't hold your breath, you might get heavily disappointed.