Ah, basically the game is going to be open world, but it started with a more narrow focus (with players only having access to a small portion of one kingdom instead of the full map) to ease people into the story. An event was originally going to be posted on the 13th that removed those limitations. Shortly before that date the mods made a plurk saying that they needed more time to set things up so that they wouldn't get overwhelmed in the aftermath of 50 players getting unleashed on the setting at once.

Given the scope of what they are probably working on, a delay is absolutely valid, since it's probably a lot of work. It's just that we haven't heard anything from them about it since the 12th and nobody really knows how long the delay is meant to be.