A friend of mine has been working on this game with his team for almost a year now. They created a WYSIWYG editor from Blender to help them create the game. Basically, they created all the events and scenes in Blender, then it simply runs in their proprietary engine. For more insider info, I hope they will publish something soon.
Check out how neat the graphics are!
This is their press page:
And here is a trailer:
Aside from being pretty, its a really great game too! I had the opportunity to try it at Play IT this year (Hungarian gaming expo), and its addictive as hell