Confusing times. There is meant to be a new Octagon album coming out. I was under the impression it was going be be called 'Mr. Nogatco' and that it was being produced by Izreal:

Kool Keith:I went to Florida. You know Izreal is real. We worked on some songs and it was cool.....

There previously was a sampler album called 'The Return Of Dr.Octagon' which sounded...well very weird, and not in a particularly good way. An Octagon myspace account does exist where you can listen to some short samples including the single 'Aliens' which is supposedly being released January 9, 2006 (originally it was meant to be 17 October 2005). From what I've heard it sounds like a big step forward from the original sampler. There is an 'official' site here which due to its lack of content looks very dubious.
So if were are lucky we will see both 'The Return Of Dr.Octagon' and 'Mr. Nogatco' released sometime early in the new year...I am not holding my breath though.