I've never heard of this project, but that cover is extremely authentic and period correct. Nice job. We'll see of its just a fluke or if you actually have taste when you show is the back insert.
I would change a few things though. First, the registered trademark symbol or whatever it is should go since its not found on very many things (anything?) from Japan back then. Usually though you would find "COPYRIGHT 1986 ENIX" or whatever in small white print somewhere along the bottom.
Also, I'd just use the Dragon Quest logo since that seems to be the official name in the English world now, and always was in Japan. I guess this depends if you are trying to make this look like a PCE CD, or a Turbo CD. You are using art that is from the Japanese release, but a logo from a (much newer) American release.
Also, the Dragon Warrior logo you have chosen is obviously computer generated. This isn't a bad thing but it looks out of place since most logos were hand drawn back then, and compared to the super cool FC DQ1 art you used it looks too modern.