I can relate to that.
Have you checked the publisher's resources on RPGNow.com? I've picked up some decent (and some not-so-decent) art for very cheap there.
As for Project Alpha...
The initiative is meant to simulate that the person with better reactions can react to the not so good reaction person. Therefore, if you roll higher than me in initiative, I move first, and you can react to my movement. When it comes time for shooting, you get to shoot first.
The mechanics as presented are the bare bones. I've not taken the time to flesh it out much (as is evident) yet. As time permits, I do plan on adding more detail to the rules. My philosophy is to get the bare mechanics down first, then start fleshing things out. But, as I mentioned previously, my time has been consumed by a fantasy RPG and a sci-fi RPG. When time permits, or when my brain needs a respite from rpg mechanics, I do plan on revisiting this and adding to it.
I should point out the rules/mechanics as written are more of a stream of consciousness than any sort of tested cohesive whole.