yo crabjim, actually im not very sure of the answer for your question , last time when i program, i started from scratch, means i learn to program the game engine too, but it seems not it is not necessary anymore, there are so many sdks around which u can lay your hands on... well some free , some like the source engine sdk, u have to buy the original, which i don have 

but in my opinion, it is better to start game development by making mods, use engines like the unreal engine or the source engine ( i want it badly but no money to buy ), it is easier, and u don have to worry so much about the technical part, u only need to know the concepts the basics and so forth, from there on, once u r familiar with making mods, u can go deeper by trying to understand n develop a game engine, get some books, they are important.

as for models... sorry man, im a total idiot in that, hahaha but if i have a need for models, then i will find u.

i wanan ask a question le, anyone here tried using managed dx with vb.net?

Engine is what drives a thing basically. Car engine, game engine, etc. It is a very very generic term so there's no real definition. But you can say the thing/code that starts and runs the game is the engine.
well FINISH IT! I've seen (and done) quite a number of projects that show a lot of potential in the beginning, solid presentation, proposal, requirements specification, but never made it till the end. One very very important thing that employers look at is your ability to finish your work (in a set amount of time). You are nothing if you can't finish your work. It is true, the last 10% of the project is the hardest, but do see it till the end. This is one of the benefits of having a degree - employers can quickly tell that you made something, you passed the minimum requirements for it, and you complete it. Even if that might not be the case lah
Gambatte!

edit: Added MIND to the 1st post