http://www.gamersyde.com/news_6002_en.aspx Epic sure has been busy improving their engine. It' s a great vid to look at from a technical point of view. I' m just really glad they finally improved their water. Before this update, UE3 water looked like ass. Now, while not as impressive as say CryEngine 2 water, it' s a definite improvement.
Most of this stuff is set to feature in GOW2.