Surece can handle high poly models, and hi-res textures just fine(largest texture in HL2 is 2048x2048 from what I heard. its the G-mans head normal map). Valve just didn't put it in because eveyones computer woul explode :P
UE3 doesn't really have anything that Source doesn't. As of now the only thing is has better than source are dynamic lighting, and paralax mapping. If i remember correctly, Valve plans to add parallax mapping at some point, and dynamic lighting is semi-supported by source, just no dynamic...
http://www.adobe.com/aboutadobe/invrelations/adobeandmacromedia.html
This destroys the competition between adobe and macromedia products, Pretty much creating a monopoly :/
I assume they will merge the features of all similar apps to create some really good stuff, but prices will be at...
He wouldn't even need to change the language to english. The english sounds come standard in the GCF's and additional gcf are downloaded for different languages.