You're in luck - I'm a huge Oddworld fan and know a lot about it (to the point where the people I met through the official Oddworld forums even changed my life. lol). Fortunately I saw your topic from the list of forum links on the right of the page while I was looking at yesterday's Zero Punctuation.

So I created an account just so I could respond to this topic.
For the latest news on Oddworld Inhabitants, you can consult the Oddworld Forums, which still sees some activity from time to time: http://www.oddworldforums.net
Oddworld Inhabitants recently released the PC versions of Abe's Oddysee and Abe's Exoddus on Steam: http://store.steampowered.com/sub/949/
You can also get them from GOG.com: http://www.gog.com/en/search/sort/search/Oddworld
OWI also made 2 more games - Oddworld: Munch's Oddysee and Oddworld: Stranger's Wrath for X-Box - Unfortunately they're not backwards compatible with the X-Box 360. However, Oddworld Inhabitants have recently stated that if AO and AE sell well on GOG and Steam, then they'll make PC ports of these 2 games to release.
You can find a good video walkthrough of the beginning of Oddworld: Stranger's Wrath here: http://www.youtube.com/view_play_list?p=B8FBCDDDAEB3ABD3
Oddworld Inhabitants are not dead: They are currently working on a CGI movie called Citizen Seige, but that is set for either a 2010 or a 2012 release. There are rumours flying around that they want to go back into games again however - But nobody knows how true they are.
Thier official website is http://www.oddworld.com/firsttenyears/index.shtml but that hasn't been updated in ages.
You can also order an Oddworld artwork book from Ballistic Publishing: http://www.ballisticpublishing.com/books/oddworld/
Good to see someone else who remembers Abe's Oddysee.

Hope this info helps.