EA executive producer Glen Schofield says that Cliff Bleszinski told him Dead Space "looks great" on the Unreal Engine. One problem, the game uses EA's own graphical engine. It's one highlight in a very revealing video interview that Planet Xbox 360 had with Schofield at EA's Redwood Shores location about Dead Space.
The entire video (.mpg) is on Planet Xbox 360's site. Camera work's a little shaky, but all you need is the audio. Schofield, with little prompting, talks very candidly about the game's design, how it compares with other familiar titles, and how it all came to be.
Should be in Playstation 3 section as well since it will be released on both platforms.