IGN have posted a Hands-On for the upcoming game, Dragon's Lair 3D. Here is part of the hands-on:

As much as I was looking forward to seeing the game and playing it, I was a little apprehensive as to whether it could really be turned into a 3D platformer while still keeping the same special atmosphere and feel that the cinematic game possessed in spades. But my apprehensions were given the day off after seeing Dirk and his 150 smooth animations in motion. It looks really good. The environments in the game are all built in 3D. That means walls, tables, chairs, pillars, bookcases, etc... All of the characters like Dirk and our old friend Singe the dragon and any of the other 40 enemies are cell painted giving the game a really beautiful cartoony feel while still giving you the chance to run around in a viable volumetric space. Textures for the 3D world are done in bright colors with great style and flair. I have yet to see any of the more realistic creepy levels, but they may have been toned down a little in this day and age considering this is being touted as a family title.