I'd just like to confirm that Team17 never rejected any advances from Al Lowe regarding the latest Larry game - however the game's direction was undertaken by Vivendi since it was their IP and as such, any request for involvement would have gone through them. Al Lowe confirmed this in a recent email exchange to me and blamed the publishers for not wanting to discuss the title.
As far as I'm concerned, Mr Lowe lost all right to input on the property once he sold it to Sierra/Vivendi. I do not know the full details on that deal, nor do I wish to, I just know that's basically how it works. Selling it and still directing it is what is known as 'having your cake and eating it' - something which happens rarely in the modern games industry.
I'm disappointed that Mr Lowe has since taken it upon himself to implicate Team17 as obstructive in his efforts to get involved.
As far we're concerned it's water under the bridge now - and we've moved on. The latter period of development for the title in late 2007 to mid 2008 was difficult given the circumstances (Activision-Vivendi merger) and the drive/energy for the title perhaps suffered as a consequence of losing the initial development/management team at Vivendi and later as many questions hung over Vivendi's internal dev group as staff slowly left the organisation - and the future of Larry and other titles lay in serious doubt.