I have to say NO to Lua unfortunately. I'm 95% a fan of it, but there are some fundamental issues that prevent me from really liking it. If Lua adds the goto/label ability as well as loop short circuiting, then I might reconsider. Heck, with a wrapper, there's no reason why they can't interface to it themselves.

What I'll probably do is stick with C# and wrap the execution into something like ScriptUO as a programming interface. So you can load C# scripts and execute directly from the ScriptUO. Much like how UOMachine did things, but hopefully with a more stable client interface. I want to keep it open to tools like SharpDevelop so that you can do really nice forms if you chose to do so.
I'm trying to think of ways to cater to the EasyUO crowd and not really the OEUO people. OEUO people can pick up either python, Delphi, C#, VB much easier then the vast majority of people who use just EasyUO. It's that short bus that I'm interested in bringing into the fold and perhaps introduce them to a much better language at the same time.
Anyhow, that's alot of dreaming. Who knows how much stomach I have for anything so far. Only time will tell.