Quote: "Okay so I'm a little confused, if someone could enlighten me a littel that would be great! What exactly is the engine?"
The game engine is the general term used to describe everything mechanical in the game, like Satchmo said. It doesn't have to do with graphical, and any decent engine can easily have new additions or replacements graphically. It can used to build other games as well, but with the same style and mechanics. For example, I'm planning on possibly creating a Roman RPG based on the PoPR Engine eventually, which means that most features of the game (how things work: inventory, crafting, trading, talking, movement, etc.) will be very close to PoPR, while the content of the game will be completely different (quests, world, buildings, npc's, etc.).
Quote: "Or do you make the game maps, add the player and the enemies, set their AI state, set their collision and how it reacts to the world and then set the graphical details to them?"
No, maps, player, and enemies are all part of the content, not the engine. The engine is how everything is handled, the content is what is handled
Quote: "If thats the case could the Game engine be, really, an advanced map editor?"
No, that's what the world editor is for...visually creating the world
Quote: "Also will the game engine handle, according to what and when you set it to, the cut-scenes and triggered events?"
The engine will handle how the cut-scenes and events work, but the content will be what the actual cut-scenes and triggered events are
. Make any sense now?