I'm using a custom made engine in C++ that I've been working on for about a year. My engine uses Ogre3D for rendering, Bullet Physics, FMOD, and MyGUI. Most of the basic FPS features are done or close to being finished, so much of this project will be level design. I don't know the title for my game yet, however I do know it will incorporate platforming, shooter, and horror elements.
I will live stream on twitch here: http://www.twitch.tv/unixunited
My game engine is open source and can be found here: http://sourceforge.net/projects/whotl/
Some tools I'm using: Visual Studio 2010 Pro, Blender, Paint.NET
Note: The frame rate in the above picture is low due to debug mode.
I'll try to stream everyday, be sure to drop by!