Work is still being done on the server, currently by Valshaaran (though not on the test server you play on ( it was a personal project from another user here)). He's been working on understanding and exporting quest related things and enabling basic conversations.
And yes, the test server runs for the beta client you play with (0.9 - which must be like the earliest playable one - without gameguard protection for which we had no time to get too deep into).