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Valkyria Chronicles. It was a pretty significant leap forward for Japanese SRPGs and had amazing visuals. Instead of being able to see most of the environment from an omniscient POV, you could only see what your squad members saw.

I'd also say Xenoblade, but that's really the latest continuation of a 5th generation series, no matter what Nintendo and Monolithsoft try to claim. Not that I'm complaining, because Xenoblade was the awesome continuation of Xenogears that I had hoped Xenosaga would be, but wasn't.