Today I was looking at the lengthy possibilities of creating a terrain in the engine. I've been looking at an engine called GreatEngine (its not really an engine, just a level developed in OpenGL, nothing is custom), it uses Bitmap's which are grayscale and creates a terrain out of them, then maps a texture onto it with a detail map. Since it created the terrain out of a grayscale picture, instead of using algorithms to create terrains under certain values, it would be a good idea to create a grayscale material editor inside the engine, where a user can build his/her own grayscale map, allowing almost any terrain to be built, I've never heard or seen this been done before, but its something I really want to go for, it shouldn't be hard to implement, because it will only need to deal with a few colours.
About the Ocean Waves... I've decided to make it more powerful, instead of just using a texture map for the reflection, I could allow options for an environment map, this would be highly powerful. For Object physics there could be a physics engine which allow you to modify positions of a character on a terrain, e.g. height above terrain etc. (the movement would be part of the library).
On top of all of this, Ocean waves would be no good for someone wanting to implement rivers into a scene, so... I would go about using the sine wave to create rivers, which would allow texture mapping also so violent water can be implemented (white water), the sine wave would check for terrain collision, therefore turning when the river is a meander, according to the terrain shape.
Later on, I hope to make the world a sphere meaning, this would mean that the world would never end, its a good way of actually creating a huge world, without actually drawing a huge world
The world rendering engine will use Frustum Culling and Octrees, for optimization, this would make sure the frame rate stays up top.
I was thinking about implementing RenderMan as the render engine, but I'm not sure how possible that would be, I need to look up some information about it since I haven't used the Pixar RenderMan Algorithm before.
Soft Shadows will be a part of the world, e.g. when an object gets in the way the lens flare, behind it will be a antialiased shadow.
I've also been looking at the possibilities of implementing L-Systems (Plant Simulations) into the actual object editor, this would allow you to animate the growth or even the wind against the actual plant.
The ocean waves will actually be visible in 3D unlike in many applications and engines... the waves are simulated in graphics, but when you sink to the level directly above the surface of the water, the water is animated flat!
It would be good if we all could create a Particle Engine as part of the editor.
Of course none of this will be using DirectX, we'll be relying on OpenGL/Mesa3D and other Open Source libraries, the reason for not using DirectX is simple:
-its a Windows only SDK
If anyone wants to talk to me about any of this, or would like to talk to me about participating, my MSN Messenger Address is as follows:
curador3_________________________@hotmail.com
If you want to contact leinard13 contact him through the email he posted earlier on in this topic.
Of course, we both can be contacted through the forum.
And I want to say thanks to those who are willing to help towards the project, that way we can get it up sooner and we can make a more user-friendly and powerful engine
wanted to sort of create Lightwave Setup with blender, like an external 'Layout'. ( I could have got this all wrong). 
I don't even want to begin to start explaining where it came from lol.