As I thought, Gamebryo engine is out, new engine is in.....
Bethesda Confirms Skyrim will Feature New Graphics/Gameplay Engine
http://pc.gamespy.com/pc/elder-scrolls-v/1140138p1.html
In 2002, Bethesda produced one of the most stunning visual gaming experiences with Elder Scrolls III: Morrowind. The Gamebryo engine used to produce those graphics became a staple at Bethesda, crafting Elder Scrolls IV: Oblivion, Fallout 3, and most recently Fallout: New Vegas. It's been a great run for Bethesda and Gamebryo, but the engine is seriously showing its age, and the studio has confirmed an all-new custom-built engine is being used for the just announced fifth installment in the Elder Scrolls franchise, Skyrim.
Announced at the e TV Video Game Awards on Saturday night via a teaser trailer, Skyrim fired up fans of the franchise who immediately began asking questions about the new fantasy RPG, including whether or not Gamebryo would be used once again. Bethesda quickly responded via Twitter, writing: "Seeing lots of speculation about #tesv game engine. It's brand new... and it's spectacular!"
Bethesda community manager Nick Breckon later provided a bit of clarification, stating that "new" meant a brand new, internally created, "gameplay/graphics engine."
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Hopefully the new engine allows for a seamless world without load screens. I want to be able to walk into a cave or dungeon, not load into one.

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