AresEd is a project that I'm working on. It is a game creation kit based on Crystal Space (which is also my project). You can find more information at:
http://code.google.com/p/ares/
The video blog demonstrating how it works can be found on youtube (next link). View it in HD. Note that the framerate of the video is choppy but in reality it goes very smooth. Also I don't have a good microphone :-)
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All these projects are Open Source.
Greetings and enjoy!