I was aware of this game, though I still haven't had time to try it out.
There's also another one which looks equally promising, but I'm not sure if it's still in the making. The guys behind it are Svarun Studios, (ex- Apeiron Studios) and they started with a Loom fan-game, to then move onto an original game inspired by Loom. Their previous website seems down, but here is a trailer from the former visual director's website:
http://simonketteniss.de/v8/?p=719