Looks to be yet another swash-plate two-stroke engine. I remember that there is an Achilles' heel for these, but I forget what it is. Friction on the plate? Possibly...
As for two-stroke motors, those aren't going to be meeting emissions requirements anywhere that I know of any time soon.
The intake/exhaust makes me think of the Wankel engines. But those have limitations as well... (Quick: What new car has a Wankel today? Sorry, none do.)
Edit: Sorry, it's a Wobble Plate engine, not a swash-plate engine.
http://en.wikipedia.org/wiki/Axial_engine
-soD