Epic Games, makers of titles like Gears of War 2 and Unreal Tournament 3, have released a new trailer featuring the enhancements made to that other thing they make: the Unreal engine. In related news, Epic has also released the November 2010 edition of its Unreal Development Kit. The kit--which is available for free here.
Graphics wise some pretty amazing stuff is to be seen and created with this engine, check it out.