The company that made transfer student went out of buisness… all ya gotta say. 
heh…but so did companies that did quality hgames.
If I recall correctly, you are right and wrong about that at the same time:
The company (the japanese main-branch of JAST) indeed went out of business before the original japanese version was finished.
However, it seems like JAST USA inherited all the material that was left behind from that incomplete project and probably put them with some additional work together to the game that we currently know under that name.
Now, we can only speculate about how close the released game is to the original concept that JAST had in mind when they started that project in Japan.
Anyway, I hope we can agree on the statement that JAST USA is still alive, right? And while JAST Japan originally started making a game by that name, they never finished doing it, so technically JAST USA in the end really made it. 
I’m pretty sure that’s a slight misunderstanding, Uni. Per my recollection, the Japanese game came out, but then JAST imploded. Peter was handed a copy of their materials, and then was told “… This is good-bye, we won’t have anything to do with you again. You have got the rights, there’s your information, we can’t help you anymore.”
The game had trouble running in English, they couldn’t fix it, there wasn’t anyone left in Japan to fix it. So they had to recode an entirely new engine essentially from scratch, which took forever. I distinctly remember hearing the graphics were at a “higher resolution” in the US release (obviously implying there was a Japanese release for comparison).
So yeah, they did make Transfer Student … but this happened very close to them closing up shop for good. A better thing to wonder is what would they have done if they hadn’t been about to go under?
[ 10-25-2007, 08:36 PM: Message edited by: Nandemonai ]