Project Draco has always needed a name change. It has "Project" right in the title and sounds vaguely like a Harry Potter tribute band. So it comes as no surprise that the codename has been replaced with a real title: Crimson Dragon.
Japanese magazine Famitsu (via Andriasang) reports that the name was given at a 10th Anniversary event for the Xbox. The report also sheds some more light on how the Kinect controls will work. Your body movements will dodge obstacles and attacks, while your hands will be used to go on the offensive. Your right hand is used for lock-on attacks, while your left is mapped to stronger single shots. The single shots deplete your spirit gauge, and if you gather up enough spirit energy you can swipe both hands for a "bomb" attack.
Developer Grounding Inc is planning to release the game sometime this year for Xbox Live Arcade.