Machinima software possible/legal with Torque?

I'd like to ask, can you create machinima software with Torque, like Moviestorm or Xtranormal State?

I was considering starting a project to create a free, simple, stop-motion based movie making software.

Features I'm considering are:

-Actor/prop manipulation (squash, stretch, scale, rotate, move)

-Animation selection for actors (pick one from a list, choose starting frame)

-Texture selection for actors/props

-Frame by frame animation (at a low FPS rate)

-Frame based sound insertion

-Adjustable light sources

-Camera controls (zoom, frame by frame panning)

Possibilities:

-Model import

-Texture import

-Simple path based movement keyframing

Now I realize Torque is more meant for games, and a project like this would take a lot of scripting. But I'm just asking if it's legal or even possible to do using either the Indie or Pro versions of Torque, as long as I use my own assets?

I'd just like to not have to start completely from scratch with this idea. I need some sort of already existing graphics engine.

Thank you in advance.