If you want to make a game engine, learn a decent language. C++ is decent, but learn it well. There are easier languages to start in, but some good C++ libs go a long way - look up SDL and OpenGL, or DirectX. From ( painful ) personal experience - it is time consuming, and you have to make sure that you stay focused on 'the game' rather than 'the engine', cos it's all to easy to end up working on the minor features for months and then ending up way behind schedule on anything that even resembles 'a game'. But, I guess it's rewarding. I've been working on diff self-made engines for at least a year; often I just tear everything down and start from scratch, so, I have very little to show for it ^_-
Modding an engine isnt that expensive.. if you find a cheap/free engine to mod that is. Look at Ogre or Irrlicht - they are free, but maybe not as full featured/easy to use as massive commercial engines.
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