I just heard about Freeablo a couple days ago. I love the idea for the project. Drag and drop your MPQ, and voilà - you can play the original Diablo cross-platform. Also the future plans of turning it into a general purpose engine with mod development + scripting is really intriguing. Obviously, lots of work left to do, but still exciting.
I spent a little time hacking around with the existing code to see what I can do (thanks for accepting my pull requests!).
Today I was planning on looking into the "NPCs and living monsters shouldn't be passable" issue for the current milestone, but got a little sidetracked and ended up trying to improve player movement.

Here's a short video of the progress: video link
The player doesn't move yet, but you can see the path that the player will take.
As a side note, I ended up writing a general purpose A* algorithm and some debug display utilities. Hopefully these will prove useful in other systems too!

That's all for now. I look forward to contributing more to this project!
