I have heard new funding has been acquired for the .NET side, but at the moment it is a great and increasing distance from "production ready" or even "usable". There hasn't been a check-in which meaningfully touched the .NET side in a long time.
Update Jan 15 2010: A recent message to one of the scala lists.
From: Lukas Rytz
On Fri, Jan 15, 2010 at 03:18, Naftoli Gugenheim wrote:
Not sure if this is what you're looking for but I think H2 can be run on
.NET, according to its documentation/website.
If you're looking for a database engine programmed in Scala, personally I
haven't heard of any but that doesn't mean anything.
If you mean an ORM etc. there are a few. You can use Lift Mapper even in a
non-Lift application (just include the webkit and util jars IIRC).
What is the status of Scala on .NET?
We're working on bootstrapping the compiler and we're fixing MSIL-Backend-Bugs along the way. EPFL will provide a compiler running on .NET (which uses IKVM.OpenJDK.Core.dll, at least in a first version)
Right now, we have a cross-compiler running on the JVM, and a reduced version of scala-library.jar which runs on .NET.
For some parts we will rely on the community (e.g. porting more of scala-library.jar to .NET).
Lukas