Yes I do and it has worked very well for me.  I keep track of all my restricted operating funds and endowment funds with projects.  My funds have different classes so I use the three classes, unrestricted, temp and perm when using projects.  It is easy to run reports then, by choosing the class I want to view.

 Using classes with projects works the best when your system is set up to require balancing by class.

Becky- Do you have your system set up so that your unrestricted and restricted net asset accounts actually equal their true balance each month?  Right now, we do not. I am just wondering whether this is possible, which I assume it is, but I have no idea where to start in correcting this.  We have been using FE for over 9 years now. It sounds like we have our restricted funds set up similar to you, we have a separate fund for restricted transactions and use a separate set of project codes.