This was taken from the sofpayback.com site. (its full of kids by the tone of the messages over there..) I took this from houseofboom.proboards30.com.
SOFPB: The game looks great and the sofpayback.com forums are full of speculation about the engine powering Soldier Of Fortune: Payback. Is Cauldron using their CloakNT engine or are you using something else?
David: We are using our own technology – CloakNT3. We have been working on this engine since Chaser and we have been improving it for several years.
SOFPB: We've seen some pretty impressive footage of Soldier Of Fortune: Payback in action. Soldier Of Fortune fans love their gibs so can you elaborate on how many 'gore zones' there will be?
David: We have concentrated to create more realistic gibs That means players are able to separate body in joints, plus there are special damage areas like head, groin…
SOFPB: Will the same gore zones also be featured in the multiplayer?
David: Yes, they will.
SOFPB: Previous versions of Soldier Of Fortune used the Ghoul engine for their gore and dismemberment. Is Soldier Of Fortune Payback using a similar technology or is the dismemberment built into the game engine?
David: We have created our own technology which properly tears clothes in joints (each character has body and clothes on it). We have also created special animations for each damage zone so some enemies can e.g. live for a moment with their legs dismembered and shoot few shots on player before they die.
SOFPB: Are there any differences between the console and PC versions of Soldier Of Fortune: Payback?
David: There are only very minor technological differences between PC and console versions. As we are optimizing code for each hardware separately to get maximum speed some effects can be slightly different.