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They're remaking it in a new engine.
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Not exactly, it's still Infinity engine, just modified.
The ingame graphics will most probably stay unchanged, as the release date is summer this year (
Are you able to access this link? ) and it's rather impossible to recreate that amount of art in just 3-4 months (if they started earlier, there would be some screenshots or anything, right?). They'll just merge games, tweak up the resolution and do some things like rerender FMVs in HD. I have no idea what "the additional content" will look like
Recalling previous Overhaul Games work (MDK2HD), I can safely assume the game will be choppy, unstable and not as pretty as it could be. It will also be an exclusive to beamdog's platform. There won't even be a Steam version.