A few questions

[Statyk]

Hello I'm thinking about purchasing amnesia for the soul purpose of developing a mod/game. And I was wondering if you can modify the engine, or only content. I would also like to know what the rules or licenses for distributing a mod based off this engine. Any other tips or useful information would be appreciated thanks

You can modify the content freely, and changing the engine functions and capabilities would require alteration of the core mechanics. I don't know anything about that, but it is apparently possible.

As for distribution, this is more of a "for-fun" thing for everyone who wants to get some decent game-design work done, or if you're like me, developing a portfolio for college. As far as laws go, selling your mods are illegal, as you are making money for tweaking another person's work. You may distribute your mod anywhere you want, so long as it is free and you give credit where and to whom it is due.