It's a definite improvement over the first in terms of technical acheivement (better streaming and faster loading) and a visual improvement as well. It's kinda hard for me to comment as I play most of my games (including ME2) on PC on higher settings than on 360 so I can't really say if its the best looking game on 360. It's definitely not the best looking this gen and even a number of multiplat games on PC look better. I definately wouldn't go as far as saying it's the best-looking game on consoles either as Uncharted 2 really blew me out of the water last year.
Overall, the textures are good, but there is still room for improvement, the animations are nice and a definite improvement on ME1 but I've seen better and the scenenery and vistas look cool, but again I've seen better.
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