The lightning effects look great.

But I don't see a big leap in texture quality.

The reflections on those pipes are just way too shiny, it looks like a glass/aluminum kind of reflection. The second pics, looks very real, I bet most people would assume is real. 

I guess we need a real time demo now.

Those reflections in the windows are amazing and the brickwork finally looks natural instead of heavily bumpmapped or too shiny.
But yes I agree that they need to work on their metal reflective properties, the rainpipe stands out like a sore thumb.

Nothing beats the going for a walk engine...

How did I miss this thread last month? The lighting in this engine looks rather impressive and the second batch of shots show a nice progression. The first batch looked impressive in the lighting but I felt the models were fairly simple and that all that power being used for the lighting meant making huge sacrifices in terms of models, textures and other effects. The second batch look amazing though.

Still don't think we'll see any big budget games using it for a while though as it just uses up too much power. Funny, I always thought Crytek would be the ones to pull off a fully ray traced game.

Well it is ray tracing, realistic lighting is pretty much a given. The engine is really comming along, it has good image quality in stills now at least. You can really see Hayssam Keilany's fingure prints all over it with the lens flares and heavy DOF on everything, except he has now decided fisheye lenses are cool.

Looks a lot like his GTA IV stuff

I didn't realise that this was him. That GTAIV stuff was incredible!

Well CGI it seems like you at least may be able to try out the realtime demo yourself 

http://igad.nhtv.nl/~bikker/files/AboutTime%20R1.zip

Nvidia cards only