Feedback it is!
This spacey/floaty, kind of fusion-jazzy style is a very interesting direction to take the source into. This was exactly what I had in mind - that the source would probably work well in many different styles and this was very exciting to hear!
I couldn't really (easily, from memory alone) connect the beginning to the source, but when the synth comes in around 0:42, it's really cool the (strong connection to) source emerges or appears. That was a very cool moment. Again, the second time the synth comes with a strong connection to the source around 1:51 is very cool.
The general flow of the piece is pretty static, in the sense it fades in, is quite samey throughout (with lots of noodly soloing), and fades out. The high points (in terms of dynamical arrangement) are the synth leads that connect strongly to the source. In a sense the structure almost feel like a long jammy outro, that is missing the more strongly source-based theme-establishing first half.
I think the piece would benefit greatly from more measured pacing: sections tend to bleed into each other here. Part of that is probably the drums and bass; they could more strongly signal transitions (and also, they're mixed very low). Having a more active, groovy bassline in some parts would help differentiating them. In general, sections seem to go on a bit long and the transitions between them could be stronger. (On the other hand, the dreamy flow is something you wouldn't want to lose either).
The jazzy guitar noodling in the intro is a good idea. It does feels like it goes on a little long, is a bit repetitive. You could start the guitar a bit later (f.e. 0:09) and figure a strong source-based hook for the part. Also consider shortening it so that the source/theme is established a bit sooner. Then again, I do like the dreamy flow and how the theme emerges quite late, and the unexpected chord at 0:29. Then again, you could save the chord progression until later, and cut about 0:15-0:40 (though you'd have to rethink the gradual drum introduction).
I think there could be more "ensemble" material before going to the bass solo around 1:00; strongly-identifiably using the part that follows in the source would work very well for the structure. I don't think the bass solo really clicks until 1:16 (there's a bit of overplaying IMHO - 0:57-1:02 and 1:08-1:12 are pretty good bits, following them with sustained notes would give the structure a bit of breathing space), and switching to guitar, the 1:28-1:44 soloing sounds great. Not sure about sticking to the same chord for quite so long.
I think you could get to 1:51 a bit sooner. The interplay between two synth lines during the rest of works decently well (and is clearly source-y). Only the 1:58-2:07 is pretty cramped with two busy synth lines, ending up chaotic (and perhaps also the fadeout).
Some portions do not mesh harmonically: 0:33 seems a bit odd (maybe the guitar descends strangely), 1:12-1:16 the unexpected chord is good but the bass seems to play in wrong scale or so. 1:58-2:07 the wah-style filtered synth seems to hit some off notes unpleasantly, and in the faded-out outro as well.
I think that's it. Lots of potential, loved the style and direction the original was taken into. Lots of concerns for structure and flow, I'd love to hear you rework those and expand this a bit (with more easily identifiable source usage!) - even in time for the Sega Mixer Drive show but I quite enjoyed this as a compo entry!