Crytek has published a new paper & presentation on their website of some new technology they are working on for CryEngine3: Real time computation of indirect illumination.  From the description:

This I3D 2010 paper is a result of collaborative research with Carsten Dachsbacher. The LPV technique was extended to support secondary occlusion and multiple bounces. The propagation scheme is improved and compared to similar Discrete Ordinate Methods. Also this paper describes many additional application and implementation details.

They’ve published the Paper & Powerpoint slides online:

And published this video on YouTube.

Simply Amazing.

via Crytek GmbH: Presentations.