I'm a second year mathematics major at a pretty good school. Ever since I became a math major I have been most interested in set theory and logic, which I guess can be lumped into the category of foundations of mathematics. Reading about Kurt Gödel and the story of Hilbert's programme really inspired me. My plans now are to find a mathematical logic program to go into foundational research, but I saw a post on a forum that really discouraged and shocked me.
It can be found here.
Similar posts in the thread also offer a bleak outlook.
Is it true? Is it mostly a dead field filled with quacks and not much going on?
Is foundational research dead? I certainly hope not, but the answer you receive will depend on who you ask.
There is a lot of research in set theory which one could consider foundational, since it concerns new axioms and the justification thereof. For example, large cardinals, inner model theory and Woodin's $\Omega$-conjecture all have a foundational flavour. Joel David Hamkins has written an excellent overview of current issues in set theory on this very site.
A very different sort of foundational work is undertaken in reverse mathematics. This programme, initiated by Harvey Friedman, attempts to discover the weakest systems capable of proving theorems from ordinary mathematics, by proving equivalences between those systems and theorems over a weak base theory. This has proved a very fruitful area of research.
If you're prepared to look into the more philosophical end of things, there is a small but thriving community investigating neo-logicism and various forms of abstraction principles inspired by Frege's work.
Hopefully other people can fill out this response a bit, as I probably won't have any more time to improve it until after the weekend.