Quote: "just wondering if we are limited to only using the provided shaders (which are very nice)."
No, you can use your own shaders - but they must use the same naming conventions for fx filenames, tweakables, non-tweakables and textures. So you can use your own shader instead of "terrain_basic.fx" for example. But you must study the code carefully and make sure you match your filenames, etc, correctly.
That seems to be the situation at the moment. Shaders for entities might be a little different since you might be able to specify the fx filename in a script somewhere - but I'd guess you still need to use variable names which the engine will recognize.
That's my understanding of the current state of play and is probably incomplete.