When I get around to it (and keep in mind that I have full-time school and work), I will be playing around with Quake 2 model files (MD2) that I'll make in 3D Studio Max and Photoshop.
As for extracting the textures and their bounding boxes, I have my own tool, which just outputs an image file for each shape-frame. You could use that if you really want, or I think Exult comes with tools for exporting all the shapes and their frames. Animated objects might be a little laborious because I'd want to make the MD2 frames match the number of 2D shape frames, etc.
Luckily, the models that need to be made most are simple (columns, fountains, etc) I wouldn't jump the gun and start on anything just yet, but when things get rolling I'll be keeping things extremely low-poly to keep in Ultima 7 mode.
Ooh, and I don't even know what Lightspeed beta is, just don't expect this thing to be finished overnight. I'm working on it with all my freetime; I just don't have much of that!
Artaxerxes: I'm not sure about the rocking back and forth bit. I think you've discovered a bug in alpha-grade software! *gasp*grin*
(As for the hills/lowlands question... if something like that were to happen, it's at the bottom of the priority list... all the trivial things still need to work first:)