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Very true but I'd imagine alot of the new visual features brought in with the new engine upgrade for Episode 2 were DX9 only. I can't provide any solid info on that but I reckon it's a good guess.

In DX8 mode, I don't see it being any different to Episode 1 or HL2.

EDIT: Just remembered as well, if you fancy killing it even more lol, theres actually DX7 mode too :P If Orange Box doesn't work flawlessly on that - NOTHING WILL!