Vinnie85: This was built using UDK (Unreal Development Kit). It's, in-short, a free to use version of the engine used to make Gears of War, Mass Effect and tons of other games. It's a really powerful editor that can let you make just about any kind of game with a bit of work. It has it's own scripting language. A lot of the art was built in 3ds max and photoshop.
caveman101: sorry man, for this early version there isn't an in-game option for resolution. This can be adjusted via an INI file.
In your Old Town directory, UDKGame/Config/DefaultEngineUDK.ini If you open this file (notepad works), and scroll down about halfway to [SystemSettings]. There's a ResX and ResY where you can plug in the resolution you want (be sure to stick to standards). The ini file is read-only, so you'll have to uncheck that before saving.
I also apolgize for not getting a good optimization pass so it'd run easier for everyone. If you want to get tricky, you can tinker with some of those other settings or ini files to see if they help you. Just be careful and back them up in case you break something.