Before I start development of an XNA game, I need to choose a 3D game engine to develop upon. Is this belief unfounded? Does XNA have basic object transformation, lighting and mesh/texture importing functionality by which you can develop a decent 3D side-scrolling game?

Chances are I'm going to need a 3D engine such as Torque X to handle most of the special effects, animation and sound for me. What are the engines that you recommend building an XNA game with? What work reliably in your experience? Is XNA alone enough? do you have repositories of code that work directly with XNA to create effects and other game environments with sunlight, fog and rain?