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The stuff looks great.  I think you should contact MMGames and see if they want you on their team.  It seems pointless to have 2 remakes going, because fan projects don't often get finished and it would really suck if neither this or the MMGames one got completed.

That'd lose points with those of us who don't like the fact that KQIX-Team/King Alexander is part of the Magic Mirror project...

First of all, KQIX is probably dead. Dead as a doornail. But assuming it isn't, are you saying that just because someones involved in the production of a game that you like is also working on a game that you are not in favor of, you should abandon the "good" game. What kind of logic is that? 

is this project still alive?

if you ask me, these backgrounds are even better than the ones made public by the kq4 remake team. besides looking more professional, they capture the feel of the original better. if i were a team member, i would seriously consider working with you as it would be a waste to have two independent protects (seeing as how most remake projects never reach completion).

very niiiiiiiiiiiiiiiiiiiiice

the demo looks great. keep 'em comin'