OK I've disabled the clearing of the Z buffer before drawing the body in 1st person and I've got the buffer a bit more linear (by multiplying the sampled texture by itself a load of times).
http://dl.getdropbox.com/u/519253/ImprovedDepth.jpg
At the moment the code will only work on ATI cards. I'll have to get my other laptop out the cupboard (with nvidia graphics) and get it working on those cards as well.
vtastek: I'm planning on being able to have selectable multiple techniques in each fx file. Probably low for ps1.4 and above, medium for ps2.0 plus and high for ps3.0. The code should select the highest quality setting your card can handle but I'll allow the user to set the shaders to a lower setting.
Great! It is enough accurate for godrays shader. It may become better in time for a SSAO shader too. My shader is directly from GPU gems 3 example, it is PS 3.0 and you can't make it PS 2.0 by simply decreasing quality passes. But phal's shader is based on Farcry 2 and can select PS 2.0 or PS 3.0 base on quality.(with if statements inside the technique)
Looks amazing!

Forgive my ignorance but I assume in this video the sun position is static? Or did you find a way to determine the sun position?
snip
Why do you think sun is always at top left corner?

That's why I always only moved sideways or forwards.

Has anyone informed IlmrynAkios of Scanti's momentous discovery?? It was THE thing holding back OVEP progress, correct? I'd like to see a renewed hope in that project; I myself have invested a lot of time poring over all those OVEP threads and technical white papers, so when OVEP seemed to take a permanent hiatus I was very bummed to say the least... But anyway it'd be great after all this time and effort that the biggest obstacle is now finally behind us.
With that said I think a HUGE thanks is in order for scanti, and vtastek and those others who have put in months of effort into these projects. I hope too that scanti makes great strides with the depth buffer, and with the OBGE rewrites! The best of luck! Cheers! :foodndrink:
I've merely done nothing but maybe gave some motivation.

And I want to look those white papers(a little synchronization between Morrowind and Oblivion), MGE is really in a state where anything(global illumination, soft shadows, cone step mapping

) is possible. :chaos: