Okay, well as a little project, I decided to throw myself as the SSAO implementation mentioned by tombofsoldier in the previous thread (this one http://www.gamedev.net/community/forums/topic.asp?topic_id=550699), and got some results. Unfortunately, the results are kinda poor.
The algorithm needs some additional data, like self-illumination/specular and texture alpha, to get it visually pleasing. I fixed the self-illumination/specular problem a bit by taking scene brightness into account. The jittering algorithm results in a lot of noise all over the place. I haven't figured out how to fix it, but you can see it in the video provided by ArKano22 in the linked forum thread above, so its not anything I'm doing wrong. It just needs to be improved.
Unless someone with more experience comes along and picks it up, I don't see how this will be usable. Hey, I only started with HLSL yesterday. I can only take this so far.
Anyways, here are some images, so you can at least maybe see what could be.
http://img509.imageshack.us/img509/5020/screenshot2yf.jpg
http://img509.imageshack.us/img509/932/screenshot3hp.jpg
http://img509.imageshack.us/img509/6939/screenshot16l.jpg
http://img514.imageshack.us/img514/3950/screenshot18z.jpg
http://www.4shared.com/file/156516836/6c35cf9c/ArKano22_SSAO.html for those of you who wanna mess with it. I'm going to bed.