They did a second edition, but the general result was power creep within the game system itself - don't get me wrong, some of it was quite necessary... the thing is, they're still in the process of updating all their material (that have a ridiculous number of splat books, I can't think of any system with more) and I don't see it ever getting done. The real weaknesses of the Palladium system lay in the tendency of the combat system to bog down quite a bit, and in the fact that you have two grades of enemy to place your players against, maybe three. The first grade is 'low end' the second grade is 'a group of custom rolled characters you as the GM made, during a process that was, for each, slightly more complicated than doing your own taxes' and last but not least, there is the 'you hate your players and wish to see them cry' grade of enemy.