I recently watched a play through of the pc-engine version and also decided to check out the x360 remake play through and it seems to me that there is a misconception that this is a remake but infact it is a sequel. Now, my japanese is not good enough to tell for sure so I was wondering if anybody here can tell me anything about it, is it a remake or is it a sequel, kind of like Tengai Makyou: Ziria 2 or something like that. I know that the makers like to make jokes even in the games titles so maybe it is some kind of joke?

Wouldn't know either, perhaps you can find some place online with a review in english that explains it, otherwise you would need to get your hands on the game and find out for yourself.