According to TvShowsOnDVD.com Volume 2 is on its way and should be released in early summer. Volume 2 should consist of the next 10 episodes of the series which are:
1-11 Denver, Dino-Star
2-1 Enter the Dino
2-2 Radio Denver
2-3 The Phantom of the Movie Theater
2-4 Missing Limos
2-5 Dog Gone Denver
2-6 Party Time
2-7 Aunt Shadies Ghost Town
UPDATED: After contacting the administrator in charge of releasing Denver on DVD, he told me that the next release should consist of the next 14 episodes of the series or it could in fact be the rest of the series it still hasn't been decided yet.
UPDATED 6/16/2008: http://www.tvshowsondvd.com/news/Denver-Dinosaur-Volume-2/9841
Edited 4 total times.