To all those saying it's terrible, you have to remember: it's a fanwork in progress. Not that the finished product (assuming the guy does finish) will be anything to gawk about.
You can search youtube and find several other, and frankly, better FFVII remake attempts by fans over the years, some recent, some not so recent. None have ever been anywhere near finished as far as I'm aware, but it's fun to watch some of them, just for the fact that I think it'd be awesome to play FFVII with updated graphics. I'd settle for PS2 graphics myself.
It's a nice thought but honestly, as big an FFVII fan I am, I am just fine if they never remake it. No matter how they do it people will complain that its not good enough.