what makes it more amazing than ps2.0... theres no visible difference from PS 2.0 to 3.0 - only a reduction of passes required to do the same thing.

actually my guess would be that whay they use is VIRTUAL Displacement mapping, which is created with PS2.0+ and is an effect to make the surface appear displaced when it not. Using real displacement mapping on the rocks would kill the framerate compared to virtual since virtual displacement mapping doesnt require additional polygons. Basicly the same thing as they do in the Unreal Engine 3.0 video with the brick walls. you can also see in the farcry video that theres no real depth to the rubble on the beach - its 'just' an effect created with per pixel lights and shadows.

nice i dont have to bash at you for once ;-P