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OWI did say on the X-factor the game might be realased Dececember 2004.
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No. The footage supposedly was shot in September 2003, and one caption reads "20 months before delivery," suggesting a May 2004 release. I think it was Oddworld.com that suggested a December 2004 release would be feasable.
It would be great if OWI did have their own independance. It'd allow them the control over the Oddworld IP we've all been saying they should have. And while Gamesbusiness.biz is highly respectable, I wasn't impressed on their reporting of Microsoft dropping OW4 from their publishing lineup, I recall.