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The guys (there are only 2 of them) are working on their editor at the moment and the physics are almost complete, I have played a few Alpha versions including some with multiplayer code and its pretty darn good.
The physics themselves are actually in their 3rd complete re-write.
***last I heard they are looking at a demo around June/July.
PICS
For more information:
http://www.facebook.com/pages/KartSimR/30291995483
Is that Oakleigh go kart track???? I've been there! Its a great track. Surrounded by rubbish tips though, stinks to high heaven if the wind is blowing from the wrong direction, lol.