Urban Legends: Why no Dragon Half?

Dragon Half will forever be remembered as the one OVA series everyone wants but will never get and there are many reasons why that is.

The official reason according to various sources was that Dragon Half bombed quite badly in it's native Japan. A four episode OVA was originally planned but never saw production beyond the two episodes we did get, which was from the first few chapters of the manga. The extra episodes would've been equally funny and huge popularity in the west prompted ADVFilms to attempt a project to fund a series but never materialized much like their sad attempt at a live action Evangelion.

But there maybe a few other reasons as to why this series never saw daylight.
Dub actor Brett Weaver admitted he added extra lines not in the script such as Damaramu's "water squirter of doom", more proof that when comparing subs & dubs certain lines can be better dubbed and vice versa but the fact that he had to add extra lines to make it funnier implies that the script wasn't that great.
The references to video games being a main concern by the fact that Lufa's parents are called Link & Zelda and Pia's parents are called Mario & Peach. Whether it's accepted as a homage or not I doubt Nintendo would be too impressed about having their characters used in a spoof fantasy anime.
Dug Finn points out something interesting in his introduction in the anime; he's upset that they cut all his scenes out of the video poking fun at the fact that they couldn't make anymore episodes.
Also Rouce the Red Lightning is a colossal pervert, some of the translations I've read from the manga are a little bit uncomfortable to read.
So what have we learned?
Well ADVFilms were better at comedy than the original script, the full story is a mixture of what seems like a fan fiction of Nintendo games and any fantasy game with the word Dragon in and the Japanese don't seem to get the humor of this the same way we in the west do.
Bottom line, this is a spoof series, which wasn't popular at the time and it would take the Japanese a few more years to understand this type of humor, when the legendary Excel Saga came about.