http://en.wikipedia.org/wiki/NK-33
297 seconds of Isp is huge. The Saturn V's F1 engine only had 263 seconds. And the closest we've come since to that level of performance in a Lox/RP-1 engine is the Merlin 1D which will have 282.
They did it by using an oxygen-rich, fully staged combustion cycle. Which means that most of the fluid flowing around the engine and through the turbines of the pumps is super hot pure oxygen at 2000 psi. That's crazy. The US has brought over NK-33's and taken them apart and we still don't quite know how the Russians got it to work.
Of course, performance is only one consideration. All the other things you'd expect like integration costs, reliability of your suppliers, etc. made the Antares a pretty risky bet. But given Orbital's choices of developing their own engine from scratch, buying a hyper-expensive engine from Rocketdyne, or buying a wonder of engineering for cheap from the Russians, buying a bunch of surplus NK-33's wasn't totally crazy.