Like any project, there should be a project plan and milestones. And so as to not bore you with the details, I've introduced KnitML.com. See the project plan to see what I've thought up. I'll let you know on this blog when we reach significant milestones with the project.
Right now, I'm hoping to be done with the initial work (i.e. "Milestone 1") by the end of October, possibly a bit sooner. Please let me know if you want to help out. The more people we get involved, the faster we can get something useful out there to knitters everywhere!