Played an hour now or so.
Started pretty cool, in black & white (as Hyakki misses his eye), after the second boss you get your left eye back and everything is back in color ^_~
Biiiig troubles with the camera though, stop sweeping away from the action >.< They should have made the right analog a camera sweeper (very annoying, as I'm playing Zelda too, that at least has a working camera). Walking is excruciating slow, but the action itself is pretty nice.
For the story, it's what I thought, Inu Yasha-ish (more likely Inu Yasha is Dororo-ish). The first chapter has you coming across a strange monster who says something to Hyakki. Then he and Dororo are captured by villagers, bringing you to a very creepy possible-demon-herself madame Yudai, who wants to know what the demon said to you. After refusing, she throws in you near a well where a gigantic tentacleheaded monster tries to devour you. Eat knee-rocket, sucker! Ooh, and Dororo escaped and got caught again. Lupin he is not.
And nice seeing the Japanese monsters. Umbrella-head still brings back hilarious memories of Osaka-Umbrella XD (Azumanga Daioh)
Edit:
I think Dororo could get off in America, seeing it's kinda like Inu Yasha as a feudal horror story and IY is huge in America. (And then I could read Dororo!
)