I remember watching this when it was in the first stages after stumbling upon it somewhere. Yes it was a fan-made project, and not developed or sanctioned in anyway by Square/Squaresoft, as it was called back then, Square-Enix didn't exist.
For the record, the project was not "discontinued", the developers still work on it, but they are forbidden by law to ever distribute it because it is derived from someone elses work, and the original holders have stated they don't want it to happen. As holders of the original copyright/trademark, Square have the right to make such a move.
Food for thought, why would SE choose to step in and shut it down? Many francises have "fan work" made and even fan-made games and remakes created by small development teams. A classic example is Sonic the Hedgehog, search the web for how many different fan-made projects there are based on Sonic and think to yourself why Sega has never stepped in and stopped it. Heck, I've seen 2D remakes of the latest 3D Zelda games floating around but these don't get stopped either.
Why stop it then? Well, from what I remember, CT:R was actually going to be "released", and playable on gamecube and stuff, which would require having a publisher. Publishing it requires throwing money into the mix, which is a big no-no when making fan-stuff. You charge even a penny for a CD to mail it on and the owners will come knocking your door for that penny.
Anyway, the screenshots are nice but the trailer is nice too:
http://www.opcoder.com/projects/chrono/ ... uality.avi
Some of the animations look a little odd, i think they're lower framerate than the scene is being rendered at and are missing tweening information, but it's really nice either way.
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Toriyama did draws character for both DB and Chrono
