Dynamically Deformable Terrain In Game Engine

Question

I am looking for a game engine that is open to the public for free or at a payed price that allows for any reasonable way of doing deformable terrain over a network. The closest I have found to this is in udk where one can build a terrain in 3ds, cut it up, and import different chunks into udk, and fracture them. Unfortunately after a few hours work I discovered that this doesn't seem to work too well for what I am trying to do. Can anyone recommend a game engine, or even a rendering engine that supports this? Programming other features into a rendering engine is not an issue for me.

Answer 1

OGRE has something like that.

Overhang Terrain Scene Manager