I appreciate 3DGS for what it is, a game development suite to introduce you to game development and offer you modern features as well. I'm satisfied in that aspect, however for my current project I highly doubt 3DGS will be able to handle it, unless I dumb down the game, which is something I don't want to do.

Yeah, I'm trying to make a First Person game. Obviously because of the perspective and the variety of gameplay, much detail is required for it it to be considered modern and current gen. I by means want to compete with current gen masterpieces like UT3 and GTA4, however and like to be in the same class, perhaps something along the quality lines of Resistance:FOM, which is starting to look dated but is still current gen.

I've looked at several engines but the most appetizing one so far seems to be the Torque Game Engine Advanced or TGEA. The game demos I played were impressive, and it seems to handle large, or should I say massive environments without hesitating. It has all the shader 3.0 goodies as well and it handles them very well. At $300 USD for indy developers it puts itself in easy reach of my lack of funds.

I'm doing more research, but does anybody else know any other middleware that could handle a modern FPS type game?

EDIT: I need something that could handle models as levels very well, in addition too terrain. I feel blocks are outdated. Also If I'm going to buy a software suite, I'd like more effective tools than what 3DGS supplies, WED/MED.

I like 3DGS and I will continue to use it, it's just not capable of handling my current project.