As far as I know, they have not been canceled. Rockne keeps stating they are looking for financing for them and more recently he has been teasing those of us who follow him on twitter about meetings he's been having with himself, Brian Henson and people unnamed about an exciting event. That may not necessarily be regarding Farscape, but it sounds promising.
"Big mtg this Weds w/ B Henson, me, and ******* - oops, can't say. Just earliest beginning-but cautiously very excited. Things are a'brewin'."