my recommendation is to start out small with this engine. it's intended to make doom-style retro first person shooters. start with a small idea, get a handle on the basics of the engine, then try to break out of the box with your second game.
as far as your specific questions, i have never play re outbreak, cry of fear or lone survivor, so i dont know about those elements of those game you want to try to use in efpse. but atleast genre and thematically, you will definitely be able to make a scary zombie horror game.