Hello,
I've been working on this since February 1st 2012 and just entered beta on 9th Mar 2012.
Will be editing top post to give recaps; see posts throughout thread for progress updates over time.
EDIT UPDATE 6/14/2012
Game is finished as of 6/10/2012 and email sent to first publisher to see if there's any interest. Check 2nd page for some videos, blog posts, etc.
Posted 3 new Videos (see page 2)
Most Recent Video here:
The "anchor" gem for the lightning special is a place holder as I don't think it fits the graphic look of the game very well.
***EDIT*** UPDATE 5/30/2012
- see larger bugfix post near the end of this thread's first page for bug status
- marking some items complete
- trimming down some of my items to complete as I have decided to focus this on a 'classic' gameplay mode to avoid feature creep
So this project is coming along very well. I am starting to compile a list of what I think is needed to finish the game so thought I would share it here and check the list off as it gets done here in this post.
Check list to Finish Game

1. Graphic effect for Gem destruction (lightning preferably)

2: PowerUp Gem CODE (at least 3 powerups if not 5) * settling on 3 due to some bugs when I did some crazy powerups

2B: PowerUp Gems graphics (same number as above) this could include modifying the look of existing gems or some all new gems
3: Sounds laundry list

- "select/click" sound

- 2x,3x,4x,5x sound or Sound(s) (unclear if one sound is appropriate or perhaps 3 sounds with a random one being played so its not too repetetive?)

- invalid move sound
- no more moves sound (pirate vocal sound probably)
- high score 'cash coins jingle sound"

- hint 'sparkle' sound

- possibly different gem 'destroy' sound to accompany destroy graphic when that is finalized

- create in game volume slider

- create in game music slider <- wont need this with the music off/on toggle below

- create in game music on/off toggle for settings menu

4: A method to keep track of 'levels' for progressive game play. 100% done

5: Sounds ON/OFF - since all sounds are functions have it check in the function if sounds_play= 0/1 and play or not play it according to the flag

6: "Quest" mode laundry list <- moving this out of my first release if game does well I can build in more modes

- quest mode 'progress screen'

- quest mode code

- quest mode sounds

7: Localization English, Spanish , French

8: Change text under the high score on the end of game screen to be proper graphics (plain text at the moment)
9: Create exceptional 'AA(A)' quality game "title" screen &/or Box art that apeals to casual gamer core audience.

10 *OPTIMIZE* Game currently seems to take 25 % of available CPU resources (even in a quad core machine ) see if this can be optimized in any way? **********UPDATE 4/30/2012 - I have done optimizations yet the game always runs the same amount CPU, I continue to think this might be due to the way DBPro works but will continue efforts to optimize anyways.**********
11: FIX ALL OPEN BUGS - while big studios get away with bugs the very harsh user community rating system can be a product killer for a indie/small developer. Set the stage for success rather than pissing people off due to a silly bug. (see later post to track these)
UPDATE 4/2/2012 ** Most recent image will be shown here**
Older Images
http://studio-erebus.com/punchy/2012/gamegem-0003.png
And here is a video to some brief game play footage.
http://www.youtube.com/embed/zqzf9ISFhWo
So now begins to add more features of which I have in plans for the next week:

1: Score

2: Destroy matches after a collapse

3: Move limitations (aka right now you can click ANYWHERE and move ANYWHERE).
After that I am contemplating some of this:
1: Animation
2: Sound
3: Gameplay twists to differentiate it from other 'match 3' games.
Finally since it is my first game I am blogging about it if you care to check out some of my posts about that experience of learning to program after being an indie artist for 15 years here is a couple of sample posts:
1:
Learning to Program
2:
Programming Motivation Plan
3:
My visual debugging tool
4:
The evolution of the main menu screen
5:
I'm back, and I win!
I'll try to update this post as I hit milestones.
Thank you!