Remember the iNdT team’s sketches and mock-ups of the next version of Canola? iNdT’s Marcelo Oliveira (aka handful) has just posted an update (video) on the progress of Canola.

Marcelo shows Canola’s new gorgeous Picture Viewer and Music Player interface with kinetic scrolling all around, and their version of cover flow. They intend to benefit from the Internet Tablet’s version of EFL (enlightenment foundation libraries) 16 bit version to provide fluid transitions.

Marcelo also mentioned that YouTube and plug-ins will be included by default but they plan to have other developers extend Canola by creating plug-ins to stream other types of content and connect to other web services. The new version of Canola will have all the settings integrated in the app.

Expect to see the first public beta to be released sometime the first week of December. Marcelo also hinted to watch out for another release in 2008 as they add new features to Canola, having something to do with the Webkit.