Haaf's Game Engine(HGE for short) is a Open Source 2D Game Engine, although by certain forum users described as a rendering engine, however it can be easily expanded with physics, network libraries and more if those are needed for your games.
This engine is published under the The zlib/libpng license and is free to use even in commercial applications, however it makes use of the BASS audio library for sound, which is free for non-commercial but for commercial use you will need to purchase BASS or use a different audio library(BASS can be simply disabled).
HGE has been around for quite some time and has been found to be very stable.
For more features click here.
A linux port has been made that is available here: Icculus.org
Warning:
The HGE Supporters group are not the original creators of HGE, however since there isn't much activity from the original creators, the HGE Supporters group will be upkeeping this engine profile instead, all credits goes to the original HGE Development team for this great engine.
About Halo2D with 0 comments by codinpsycho on Feb 29th, 2012
The Siege is our first game , our first step into the field of Game programming.
We are a team of two hardcore programmers.
Game Mechanics developed it while learning Game Programming and we put our very best effort to make it worth your playtime. The source code is also provided along with the download, in case anyone wants to check it out. Please give us your feedback or criticism, both are welcomed.
Caelum 
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You guys might want to know that HGE has been ported to Linux. So any HGE game can now be compiled to also run on Linux.
Icculus.org
Now there is no reason for game developers using HGE to not support Linux, not to mention sell a few more games to the Linux users.
HGE is a good engine. easy to do own game.I too making game with HGE engine. My skill of programming its not much but with HGE i can focus to important things not to fight with system;)
free?
late reply: Yep, including commercial use, the sound library it uses(Bass) was/is not free for commercial use though, but it can be disabled and replaced with your own/another sound library.
I learned how to make a main menu with Game Maker 4, but those were hard to set up, this is easy, much less programing required :)
Glad to see it posted here. A good engine, which is keep me learning some programming stuff.
nice...i download it now and im sure im gonna track this engine
Oh yea, HGE is really simple and good to use
it has even tutorials for the engine, when you download it :)
tutorials with compiled files, like showing you how to make a main menu, and that. Really useful.
yeah HGE is awesome :D
it also works well with other libraries/engines such as physics engines, I myself have started using HGE together with RakNet(network engine/library) recently, so far worked good :D