To the SceneEditor features:
I'm aiming on a non-interface tool, that means that you'll have no big gui taking all the view, you'll create the level with the keyboard and mouse. Of course there are gui's too, but only as many as required. Unused gui's will disappear. There will be several ways to build and modify, a flythrough, which you already see in the video, a top view and a RTS view. There are several render modes, too. (Shaded, Wireframe, Points) Realtime physics creation, effect emitters, dialog functions. You can change the sky, choose wad files for your wmp file and place the sun. You can set the fog, choos the script for the level, use SceneEditor templates including several useful things. And many more...

Entities
Change skins, attach actions, set materials and shaders, choose skills/flags...

Geometry
Scale, use textures, use shaders and materials...

Effects
Use emitters and place them in the level, create the effects and view the results in realtime in your level. Imagine, that you create scenes, in which an actor is running through a room, and behind him is everything exploding. And you can see the results, while you're creating them.

Physics
What is better then realtime physics editing? Nothing! There are no limits with the SceneEditor. Ok, perhaps your hardware.

To the Contest:
The contest is still running, please take part.

To the future:
Current Version: 0.1
Release of the next video: this month
Release of the first public beta: unknown
Release of the SceneEditor: 2006