On a new topic, I wonder if the next Dragon Knight game will feature The same Dragon Knight, or if you'll play as a new initiate to the re-formed order of Dragon Knights, with the player character from the previous game as the master of the tower. That would probably be a logical way to "depower" the previous character (instead of actually de-powering them) so the game is a challenge.
I wondered that too. The story for Project E is pretty easy to guess but I have no idea what they will do for Project D except for it will feature 'the dragon thing' as someone put it. I'd agree with Trippy as well, it would be nice to have the option of importing your DKS character although it may be awkward to sort out game balancing issues. Realisticly though my best guess is you will start off as a new character and your DKS character (imported or not) will be your mentor.
The main thing I'm wondering is from reading Lar's comments project D will be something that has not been done before, ever, so I wonder what that is?