That's no projection...more like a Fruedian slip.
A freudian slip is where you unconsciously reveal how you feel right?
What's the functional difference between a projection and a freudian slip they both fit this situation.
Ahhh, got it:
http://en.wikipedia.org/wiki/Psychological_projection
Psychological projection or projection bias is a psychological defense mechanism where a person subconsciously denies his or her own attributes, thoughts, and emotions, which are then ascribed to the outside world, usually to other people. Thus, projection involves imagining or projecting the belief that others originate those feelings.[1]
Projection reduces anxiety by allowing the expression of the unwanted unconscious impulses or desires without letting the conscious mind recognize them.
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In one example of the process, a person might have thoughts of infidelity with respect to a spouse or other partner. Instead of dealing with these undesirable thoughts consciously, the subject unconsciously projects these feelings onto the other person, and begins to think that the other has thoughts of infidelity and that the other may be having an affair. In this way, the subject may obtain 'acquittal by his conscience - if he projects his own impulses to faithlessness on to the partner to whom he owes faith'.[7] In this sense, projection is related to denial, arguably the only more primitive defense mechanism than projection, which, like all defense mechanisms, provides a function whereby a person can protect the conscious mind from a feeling that is otherwise repulsive.
http://en.wikipedia.org/wiki/Freudian_slip
A Freudian slip, also called parapraxis, is an error in speech, memory, or physical action that is interpreted as occurring due to the interference of some unconscious ("dynamically repressed"), subdued wish, conflict, or train of thought. The concept is thus part of classical psychoanalysis.
Slips of the tongue and the pen are the classical parapraxes, but psychoanalytic theory also embraces such phenomena as misreadings, mishearings, temporary forgettings, and the mislaying and losing of objects.
If I understand correctly, Kidd!! is referring to Sniper 'momentarily forgetting' the way all of this is supposed to work (or a 'conflict' between the old ways of the matrix and the new ways of the red pill), hence Alchemist's "Correct answer":
She'll find me, I won't be lookin.
I'm content with my present situation anyway.