The only differences are our input and output folders and the different coordinate system of our input file (WGS 1984). Also the output coordinate system is different.
Runtime error Traceback (most recent call last): File "<string>", line 5, in <module> File "c:\program files (x86)\arcgis\desktop10.1\arcpy\arcpy\management.py", line 7786, in Project raise e ExecuteError: ERROR 000622: Failed to execute (Project). Parameters are not valid. ERROR 000628: Cannot set input into parameter out_coor_system.
You might try removing the "r" from in front of the coordinate system file path in the output_coordinate_system variable. You can also use arcpy.AddMessage(output_coordinate_system) to verify the file path is correct.