I saw the video and I've got to say it looks pretty cool, I would like to see more. Maybe you can release video clips like a developer diary, with your own intro and stuff. You really dont see developers show the nuts and guts of their game, other than the "staged beta", where everything conveniently looks nice, but is considered "beta". All this really takes into account if you're actually going to work on this game, instead of it dying out later (like most other promising projects here, no offense). Ive got a few questions/comments:

I particularly like the body collision system. It offers that second level of depth to the character, instead of seeing the bullet disappear mid air due to his collision box(which usually extend outside the model). Will you give seperate animations for each body part getting hit? It would be awesome if you did. A shotgun blast to the back would arch his spine forward, a headshot from the front would tilt his body back and drop.

The bone rotation is pretty nifty. You said that the character's eyes track the camera? Can you show some video of this effect? Ive seen this alot in games, and it really does make the character seem alive instead of a robot.

How will the A.I work in the game? Will each soldier be scripted as solo players or integrated into a group system right off the bat? Or a mix of both?

The gun you made looks technically nice, I like the design. Although I can't really see the texture clearly from the shots of Keith holding it (whom by the way is pretty cool looking). I do agree with the others that it may be a wierd combination of cartoony texture and "realistic" design. But I cant say too much about it since the gun in the image is small. From what I saw it looks more like a painted style, kind of like the older style of drawing highlight, texture and shadow right into the the texture. Nowadays you need seperate maps for color, bump, specular instead of making it one static texture.

Hopefully this project won't vaporize because its pretty cool so far, but from what I see it's still a group of small dis-jointed systems which look promising, but not enough to go on.