This will definitely be a stand-alone game. It COULD be embedded if I wanted to, but I feel it would be better if it weren't.

Just about everything in the game will be randomly generated, so the loot could end up resembling the Diablo franchise.

Check out the other 3 dev blogs, and you'll see some of what I have planned. I'll be writing another of those in the next couple days, and will be doing the first "let's play" soon, to show everyone how it's coming along!