That video shows some serious issues with the game engine. Is that the extent of the combat system, waving a weapon and having a particle effect appear? All that happens is Psionic's dwarf waves his axe and particles appear on top of Psionic's spider creature. The axe certainly didn't hit the spider.
Another issue particular to this is that the particles appeared the instant the attack animation began. There was no projectile fired either. It just looked poor. It would look phenomenally better if halfway through the animation (fully extended) a magical projectile left the axe and collided with the spider.
Is there real melee combat in this engine? That is, weapons hit creatures, hit shields, hit each other, etc.
One more tip, you should use normal mapping for the axe and the spider. It looks incredible. The spider has a wicked slimy look and shiny metal always looks better than dull.

Come see the WIP!