A lot of posts are praising the capabilities of paperworld3D. Although Flash has not reached the speeds of C++/Java, still, the potential for gaming (or 3D applications) is there. This is very exciting. So far, the developers have developed a Star Wars obstacle course with the engine, creating the world in 3D Studio max, exporting it to a file to be read with the engine.
Here are the links:
The obstacle course link:
Man, I suck at this game… I better keep my day job…