I'd heard that it was similar.
But at that point Survival Horror was it's own Genre... and as I recall Capcom didn't even invent it.
<{POST_SNAPBACK}>
Yeah, I realize Survival Horror games were pretty damn stagnant gameplay wise awhile back. Just some of the similarities are incredible... You shoot by pressing Square to take aim and L1 to fire... You store you items in the same kind of magical crate (though, this one doesn't magicly travel everywhere)... Instead of finding people mutating into zombies in some fictional town in the middle of nowhere, you find people mutating into monsters in a real town (in a fictional situation) in the middle of nowhere. I just find it really funny.
So far though, this is the little RE clone that I wish I had played a long time ago. It's such a good game so far. The story is quiet good (probably being enhanced for me because I'm playing it straight after PE), the characters a quiet a bit more realistic (Assuming you can swallow the hole magic mitochondria thing) the customization is way beyond anything RE did (until 4 anyways) and you can really take your pick on how you want to play. There is plenty of ammo if you want to kill everything in sight or you can take the stealth route and avoid (most) combat.
EDIT - The only real thing that it doesn't have is that survival aspect of RE... Since your magic can keep you alive those tense moments aren't there....