All the new engine features shown off at GDC 2007.
1.Time of day lighting
2.Dynamic soft shadows
3.Real time ambient maps
4.Lightbeams
5.Long range view distance (upto 16km)
6.Parallax occlusion mapping
7.3D ocean technology
8.Facial animation system
9.Parametric skeletal animation system
10.Procedural motion warping
11.Object motion blurr
12.Depth of field
13.Breakable buildings
14.Breakable vegetation system
15.Advanced rope physics
16.What you see is what you PLAY editing system
17.Component vehicle damage
18.Next Generation physics system (nuclear bomb demonstration)
YouTube - Cryengine 2 special effects 
CryENGINE™ 2 Character Pipeline Advances for Next-Gen 1/3 Videos to accompany CDG 2007 slide presentation.
14 - What is a character?
17 - A few runtime deformation types
21 - Simple 3 vector driver: shape
28 - Arbitrary drivers, using flowGraph to dump joint rotations to HUD text
30 - Arbitrary drivers, using math nodes to drive a chroma shift based on joint rotation
31 - Arbitrary drivers, using flowGraph to drive amount of water trickling down HUD by same joint rotation
(not shown in CDG presentation)
38 - Linear Blend Skinning vs Spherical Skinning
(volume preservation)
39 - In Game example of spherical skinning volume preservation
(flipping tentacle)
49 - Sculpting and extracting relative, pose driven morphs
50 - Simple pose driven morph example
YouTube - CryENGINE™ 2 Character Pipeline Advances for Next-Gen 1/3 CryENGINE™ 2 Character Pipeline Advances for Next-Gen 2/3 Videos to accompany CDG 2007 slide presentation.
52 - Setting up a simple pose-driven morph with the Expressions Explorer
54 - Pose-driven morphs, automated 'fleshy eye' setup with morphs or bones
55 - Fleshy eyes in-engine
63 - Pose-driven joints,'heper joint' Nanosuit example (Crysis)
67 - Animation retargetting examples, internal tests and R&D
85 - Case study: Flash Freezing Characters, debug-mode gameplay showing dynamic freeze/shatter effect
89 - Interactive pre-baked physics, Baked physics (keyframe animation) physicalizing upon collision
92 - Bringing cinematic physical destruction to varying hardware specs (physicalizing pre-baked upon collision)
YouTube - CryENGINE™ 2 Character Pipeline Advances for Next-Gen 2/3 
CryENGINE™ 2 Character Pipeline Advances for Next-Gen 3/3 Videos to accompany CDG 2007 slide presentation.
101 - Unoccluded Area Direction, soft self-shading within the normalmap
103 - Cloth rendering, cloth shader combines cloth, plastic and metalin one single drawcall
129 - Look-at IK test, combining Rim-lighting, SSS driven morphs, lookIK, the Eyeshader and Eye-overlay technique
131 - Fleshy Eyelid stress test
136 - Creating a simple Linear Expression
137 - Creating a Nonlinear Expression
145 - Basic Automated Phoneme Extarction; Combining audio and text to generate a basic mouth animation
149 - Joystick control setup, complex mocap setup
150 - Joystick control setup, simple
157 - Joystick controls moved by Mocap Data instead of being hand animated
158 - Simple Mocap Workflow
159 - Initial automated facial animation on a mocaped body
161 - Earlier raw data test
YouTube - CryENGINE™ 2 Character Pipeline Advances for Next-Gen 3/3 More video and info: YouTube - sariosto's Channel Source video: Christopher Evans: 3D Modeling, Set-Up, and Animation
p.s.
YouTube - Crysis joke trying in high settings