Quick Update:

Looks like I have the basic AI implemented for the Red ghost (all the others should be easily extrapolated from that one). I was also able to fix a couple bugs related to the new tunneling system I implemented. Finally I added a slight pause or back step for each pellet that Pacman eats to give the ghosts a chance at actually catching up to him (though this may be removed pending the AI is strong enough to not need it).

I still need to add sound effects and music (as well as their associated sub-systems) and the ability to eat ghosts and have them return to home base to regenerate. After that we're looking at a beta release to test and enjoy.