An interesting concept, but--
The animations are far too stiff, and the storyline is kind of... incredibly generic.
It's nice to see other users with Torque appear, though. Have you checked into Torque 3D much? I purchased a copy of Torque 3D Professional (a whopping $850), and so far, it's !@#$% AMAZING.
As far as your terrain goes, you should look into using ATLAS terrains, rather than the standard, legacy terrains. It's a lot more flexible. You should also, at the very least, use detail maps - your terrain looked incredibly generic. I assume that you're going to be working on improving the inventory system, rather than having it up like that?
Anyways, keep up the work - it's got potential.