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It's been a while since we last saw anything from Lucasarts' current gen Indiana Jones effort. I remember seeing a short scene from a San Francisco back at E3 2006, but then came Star Wars: The Force Unleashed (using much of the same technology) and it was all quiet around "Indiana Jones 2007".
IGN reports that the game has indeed been cancelled, while Joystiq reports that it hasn't been cancelled or that at least something Indy related is coming.
Perhaps we will hear something around GDC in March. Lucasarts have been pretty active around GDC in previous years.