Now, often I see people talk about how they want to create the next Oblivion and give up when they find out that just using just a paperclip and some bluetack only gets you a bluetacky paperclip and really creating something like an RPG take significant dedication, talent, and desire. As such, it is easy to poor water on these little fires by replying to such threads with a dose of reality - that commercial grade RPGs take a team of paid developers and artists years to create. And that previous efforts have just stagnated to the point of no hope (think Arkhart).
However I remember when Hero of Allacrost was just the dream of their lead developer Roots and he was canvasing for support and plugging away regardless of negative responses. Now look where they are - Allacrost is really shaping up nicely and turning into an excellent game. If progress keeps up, it will be one of the best FOSS games out there.
Back to Project Kilo, it could fill a fairly significant hole in the Free game scene. There are few ambitious RPGs out there - maybe Open Outcast although that's not a traditional orcs and arrows RPG. MMORPGs are not the same thing so do not count as RPGs which contain a strong single player element and do not require learning the l33t rulez and befriending level 14223 sorcerers.
The fella behind Kilo seems determined so it'll be interesting to monitor any follow up. It looks like the project may use Crystal Space. The beauty of making an open source game is that there is no deadline or nervey investors so developers can dream - the trick is finding enough people whom share that dream to the point that they will help realise it.
Speaking of MMORPGs, Iris2 - the 3D Ultima Online client - is officially out. So UO players should be celebrating in their online havens. >:-)