It uses a small readblend library that can extract arbitrary information directly from a .blend file. Right now it can extract meshes, camera position, textures and physics/collision detection information. Screenshot of Club Silo running in GameKit is here:
![Image](http://bulletphysics.com/gamekit.jpg)
You can download source code and precompiled Windows executable preview here:
http://code.google.com/p/gamekit/downloads/list
It uses Irrlicht 1.5, Bullet Physics SDK 2.74 and readblend. Windows projectfiles are included, as well as CMake build system support for cross-platform building. Currently only Windows and Mac OSX are supported, Linux and iPhone are planned.
Feedback is welcome.
Enjoy,
Erwin