Yes, it’s still happening. DC wants five issues finished before they launch — understandable given the flack they’ve gotten for late comics — and they’re on #3.
When asked about the appeal of continuing as a comic book, Bryan Fuller answered:
The big appeal in doing a Pushing Daisies comic is the story isn’t finished. The big fun in doing a Pushing Daisies comic is the story is a little darker and a lot bigger.
Update: Here’s a bit more from EW, where Michael Ausiello asked Bryan Fuller about the series:
Issue number 1 will hopefully be out in early 2011, issue number 2 is being colored as we speak, and issue number 3 is being written. Our Emmy-award-winning composer Jim Dooley and I have been talking about giving the audience a multimedia experience with the comic—specifically a score. We have no idea whether we can actually afford to do an actual Pushing Daisies comic soundtrack (because the cast has agreed to sing songs and those licensing fees are expensive), but Jim has already started composing musical cues that we will either release officially or stream for freesies online when the comic book is published. I’ve already heard the track for Lee Pace’s cover ditty and it’s fantastic.
(Update via Robot6)