PlaneShift uses CrystalSpace as it's rendering engine, and yes, CrystalSpace is open source. The PlaneShift game engine is also open source. When you have a rendering engine like Crystal Space you can draw stuff on your screen, but that doesn't make a game. So the entire game logic is open source, just like Crystal Space, just like Linux for example.
However, there's a difference between the PlaneShift
game engine and PlaneShift
the game.
The game itself, which means PlaneShift's lore, stories, quests, unique art assets, world rules, basically what defines PlaneShift as a unique
game is proprietary, meaning it's owned by the Crystal Blue foundation and you can't reuse it.
However, it's perfectly possible to take the PlaneShift
game engine code and make your own MMORPG. You will have to make your own art and write your own lore, stories and quests though.
So, the confusion mainly arises from PlaneShift the game and the PlaneShift game engine having the same name.
I hope this clears things up for you