Wouldn't it make sense that DE would port UC over to the PC as UT 2 for the following reasons (assuming that it is NOT Legend's secret project):
1)UC is not likely to generate any income for DE until around the time it ships (which could be a long way off if MS's network plans are delayed, which is likely), and this is a way to get some revenue
2)They already have all the familiarlity and resources in place to make a UT 2 far faster and cheaper than Legend
3)I don't know about how the Unreal engine licensing works but I don't think DE gets revenue from other Unreal engine games like Epic does (or maybe only a small amount) and therefore needs to get some revenue to continue Dark Sector, which (it is my theory) was put on hold for this reason and the fact that a lot of technology seemed to be wastefully developed in parallel. [This could just be because developer posts were not making clear who had developed what.]
My thought is that even if Xbox sells decently through the coming year, the revenue from UC would be vastly suplemented by a PC release of essentially the same game. Of course if UT 2 is Legend's secret other project then all bets are off, but I always got the feeling that Legend's other project was original to Legend (or a WoT sequel which I doubt). Of course this could all be just some ignorant mistake on the part of the "source" which has grown out of control.