Firstly I've been working on more vfx. There's effects such as the explosion and if you notice the slight red tint, that's a 2D filter which increases the screens red value as the player takes damage. There's also a screen shake when you're actually hit.
The Character now holds unused weapons on their back, there is now a 3 weapon limit because of this though, having any more than that would look silly.
Grenades are all working again, you could chuck around duds for a while, but they actually explode now.
I've recently created a twitter account, it should provide a more real-time update on how the game's progressing, so follow there if you're interested in that sort of thing!