It says on their site, that their demo, which is to be released hopefully this winter, will be 10 scenes, but I suspect that when the game is fully completed, it will be a full remake.
As for how things are looking...it looks FANTASTIC. I can't judge the gameplay or anything by just a few screens and music, but I'll just say that these screens look amazing. It takes a great, great, great deal of very hard work to produce something like that (my friends and I are trying to do something similar to this, but an original game. Our models and textures look nothing as good as this... this is... wow). The remade music samples is also terrific. TERRIFIC! Hopefully camera angles won't be a pain (a fixed camera would probably be best) and the animations are nice. Wow... I do really hope they finish this. I know they have the talent to, but it's gonna take a damn long time. I would totally pick this up if Square-Enix decided to publish/clean it up. Me = excited.