Saw an ad in off road mart for an evo 200 that said that Beta are discontinuing the 200 version. Has anyone else heard anything of this? I love the 200 personally and would be sad to see it go.

Not heard anything about that, had a look on the Beta website but no mention of anything there.

How is the Bultaco project going?

No idea where they got that idea: 2015 200 2t: http://www.betamotor.com/it/trial/bikes/evo-125-200-2t-2

... although the text doesn't actually mention the 200. Maybe it is toast.