Project OffsetThree guys in an apartment (they were part of the team that created Savage: The Battle for Newerth) are working on an FPS game in a fantasy world. There's a preview video and I can describe it in one word: hot.
Here's the video link: http://www.projectoffset.com/downloads.html.
Here's a link to the game site: http://www.projectoffset.com/.
Very, very impressive.
Thanks to DQ reader Mike Smith for letting me know about this.