They're sort of sister projects. NZOSVLE is very much focused on code development and system integration work. Catalyst did the technical evaluation work and is a Moodle Partner - the evaluation work was commissioned as part of the NZOSVLE project. OSCINZ is more focused on contextualising the VLE for cultural requirements in New Zealand, specifically Maori and Pacific Island communities. They've been working on graphical intefaces and Maori, Tongan and Samoan language packs.
NZOSVLE now goes into Phase II with funding through to July 2006. OSCINZ has finished its work but now the same team is focused on FOSS Learning Object Repository infrastructure. See OSLOR.
Also, we've upgraded Eduforge, which is an output of the NZOSVLE project. Anyone is welcome to use and contribute to this resource.