It's a little embarrassing to show at this point, but what the hell. Myself, and a small group of others are working on something that I call the "Citrus Engine." It's in a fairly early stage, but we are releasing new updates pretty quickly.
Blog:
http://blueflamedev.com/blog (look through the Citrus Engine tag).
Demo 3:
http://blueflamedev.com/projects/citrusengine/demo_3.php
Demo 2:
http://blueflamedev.com/projects/citrusengine/demo_2.php
Demo 1:
http://blueflamedev.com/projects/citrusengine/demo_1.php
It's a platforming engine being built in AS3, which will use XML to control level design and sprites (at this point, everything but menus). Parallel to the Citrus Engine are "tools" that will allow you to build the levels visually through AIR's ability to read and write XML files.
Citrus Engine's model is currently formed to profit the developers, and not to be completely open source, although certain aspects will be leveraged to the community eventually.
Blueflame Development and the Citrus Engine

