Well, Square Enix of North America already denied the rumored 2008 release date of Final Fantasy XIII saying that they were undecided (it could still happen), but it's probably not the same for Japan.
Famitsu, a Japanese gaming magazine, decided to call up and ask Square Enix's PR department a few questions about the matter.
It's good to hear the development is going well. Hopefully soon, they will be able to release an official statement about the games.
Will Final Fantasy XIII be released in 2008?
All the information about that is false and Nomura/Toriyama never said the game will be released during 2008.
What caused that rumor?
The websites overseas probably mistranslated Toriyama when he said the development team is hoping to release a battle system demo in 2008, and "finally get the experience you wanted".
To conclude, what is the current status of Final Fantasy XIII, and when will we hear more information?
The PR department has stated that the progress of all Fabula Nova Crystallis games is going well, and the company always releases new information in events and through the media.
[Famitsu interviews S-E PR department regarding FFXIII's rumors]