Update a record in custom module
The $items['redashboard/project/%/edit'] declaration needs to be made inside of re_dashboard_menu(), and there needs to be a re_dashboard_edit_project_form_submit() function to pipe $form_state['values'] into db_update().

Other than that, it looks like it will get the job done.  You could use db_query() instead of db_select(), since it's faster, and the query conditions are static.  Also, make sure you have a way to handle db_select() not returning any results, since fetch() will return FALSE in that case.