Hello, I really liek the concepts of this game but the graphics to me look terrible and i do like my graphics. Have the developers mentioned anything about updating the engine and overall graphics?

not anywhere in the near future that i know of.

The graphics and stuff are based on Icarus' engine that they use for commercial training purposes (afaik)

The graphics aren't as bad as they look in the screenshots.

 I have my graphics turned on highest settings with the screen resolution 1680 x 1050 and find the quality to be quit good.

That said, it's the game play that makes this game. I find the ingame crafting, skill and combat system to be the best of any MMo I have played in the last 10 years. 

Get past your graphic issue and see that there is a really good game here.

They are constantly working of optimizing and getting the engine better overall. I doubt that FE is actually using the engine to it's fullest, you'd only need to look at some of the resources och ATV's to see that. And textures on objects in the world have been updated a few times already.

There was an article recently about the graphics of Fallen Earth, and how the current art lead is working on upgrading graphics, and consolidating resources/assets, so that we'll not only get more varied graphics for houses and such, but it should also run better due to textures being optimized.

Trying to find it at the moment, so I can link it here.

Also, with properly set up graphics (and it requires a bit more effort to look good than normal games, granted), you can make things look very nice - The graphics style is different, sure, but once set up are no less impressive than AAA titles. One of the really neat things about FE's graphics is the view distance - you see something on the horizon that interests you? You can actually go there and explore - It'll take you a few minutes to get there (which I think is cool), but you actually get to go there - no artificial boundaries (except the death zones), and no 'painted on' backgrounds.

Aha, here we go:

http://www.massively.com/2009/09/27/fallen-earths-art-director-talks-about-updating-the-apocalypse/

To add, afaik most indie companies can't afford the luxories of the Unreal Engine (or similar counterparts), plus its so overused,  I'm not sure FE would look as good as it does now in an engine someone else created.  And yes while most of the screenies look awkward, the game looks quite different from them.  How can you argue with a blue mohawk or liberty spikes?

I don't mind giving up top notch graphics.  But if you are giving something up, you should have gains in other areas, like performance. 

I think the game looks good enough from the screenshots and video.  It could be better ofcourse, but it's the gameplay and community that will keep you interested in a game long term.

It's probably also worth mentioning that Icarus Studios are actually using the same engine for all of their projects currently, including their iPhone game, Dexter - And since they're also trying to sell their engine/system as a total solution a'la HeroEngine, we can expect to see consistent updates in the years to come.

The models and textures look great, so the graphics are fine.. if they arent shiney enough for you, then this just isnt the game for you