This looks quite interesting. It looks similar to PhysX but with the focus on fabrics and hair. It looks quite impressive I have to say. Any thoughts on this? I think I've seen something similar about this before, but I'm not sure.
http://www.eveonline.com/devblog.asp?a=blog&bid=788
http://www.youtube.com/watch?v=Gf26ZhHz6uM
I'm a bit dubious about how well it will work with performance limitations as it seems fairly hefty. It's unsuprising they're working with nVidia too.
I'd expect to see this in both Dust 514 and the updates that have been mentioned previously by CCP to EVE Online for allowing players to use stations more, walk around them, meet players etc, as well as having increased avatars (and having full blown people as an avatar when in the station too).