I visited The Travel Bug Party Shack area today on a TB Rescue mission, the cache has been archived due to muggled multiple times. I looked in the original GZ area didn't see the TB in the cache or on the ground or nearby.
Prior to visiting the GZ I reviewed logs and communicated to a few fellow cachers that last viewed the TB and it seems the last time it could be confirmed as seen was July 11, 2009. The cache was muggled shortly after that and moved a few times, I checked the GZ area of the new coordinates and again came up empty.
I am really sorry that I wasn't able to provide better news and regretfully think you may want to change the TB's status to missing. There is always a possibility that a cacher may have found it between the time it was last discovered (July 11, 2009) and when the cache was first indicated as being muggled (August 1, 2009) and just has not been recorded. But most likely it has been swiped by a muggle who found it as the cache is a high traffic area for people.
Sorry I couldn't give you better news.