Thanks Sam, I agree on a couple of things you said there, for me Resident Evil went downhill as soon as it went 3D, I remember going out and buying Code Veronica for my Dreamcast and although I was initially impressed, it wasn't long before boredom set in, but I loved the Dreamcast version of Resi2. The last decent one's for me was the Gamecube re-make of the first and Resident Evil Zero, it just isn't the same without the still images and fixed cameras.
I also agree on the choice of engine, but I have been working with GTK Radiant for 6 years now on and off, I like it's ease of use, simplicity and user friendly functions, although it has it's moments where you want to pull your brain through your eye socket. Also, I think it would have taken a lot longer than 4 days to create the main hall in the Source engine.
Do you by any chance have any modelling experience Sam?