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Are we allowed to create more than one instance, say I want to develop a medieval game, and then a different sci-fi game? Basically is the license per game created, or does it cover all games made with the purchased engine by the person who bought the license?

I would say, you can develop your second game, but as soon as you reach the price of a license as income from your second game it would be fair to purchase a new license for it. Why? Because otherwise somebody will come and start offering NWE as service by just purchasing one license. On the other side, if you have multiple servers for the same game only one license is required. For example if you have an US, EU or whatever server for the same game maybe simply with a different language, then a single license is fine.

Thanks for clarifying that. I have several game ideas, was toying around with what to develop, One was more for a kids oriented type game, the other would be a traditional browser rpg. Just wasn't sure which path to go down first.

Well go on, try all what you want, you will have to purchase additional license only if you starts to get money from more than one game basically