Nothing appears to be incorrect – (and I assumed you’ve gone to saved your permalink structure to flush the rewrite rules as the comments suggest? 🙂 ).
I would recommend using this plug-in to determine problems with your url-redirection: http://wordpress.org/extend/plugins/monkeyman-rewrite-analyzer/ – update your question with your findings and someone may be able to offer a solution
However (but this probably isn’t the cause of your issue)., you should not translate the post type’s name, have:
register_post_type('project',$args);
instead of
register_post_type(__( 'project' ),$args);
Translations are for the benefit of the user – and so should be on labels only – the WordPress internal names shouldn’t depend on translation.
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