We have learned that Capcom's survival horror prequel Resident Evil 0 is progressing steadily, and looks like it will be released at the end of the year.

Resident Evil 0 follows the exploits of characters Rebecca Chambers and newcomer, ex-Navy Seal Billy Cohen, as they adventure through a zombie-infested speeding train and explore the areas surrounding it. The title enables gamers to switch between the two characters at certain points, using their strengths and observing their weaknesses to complete specific puzzles and move forward. It is also rumored that gamers will be able to drop items at will, which would significantly change the gameplay dynamic from any other Resident Evil offerings.

The title is using similar technology to that featured in Resident Evil (remake) for GameCube. It will sport a combination of pre-rendered backgrounds and FMV animations, real-time shadows, reflections, and lighting effects. The end result is said to be "just as pretty as Resident Evil, if not more so," according to sources who have witnessed the game in action.

One scene described featured Rebecca Chambers struggling atop a speeding train. The locomotive was an FMV animation, beautifully animated, with a sheet of real-time water raining atop it as it sped by detailed backgrounds. All of this was brought to life with real-time lights and shadows, and of course a group of ugly zombies to boot, allegedly.

Capcom plans to blow Resident Evil 0 out as one if its two biggest releases for the holiday season. Look for more as the information becomes available.