I don't think that those problems would apply in this case. I'm hardly an expert, but I'd be doing it with post-proccessing shaders, which wouldn't interact with the engine, only look good (hopefully). Also, I'm thinking along the lines of not just static shadows, but having anything that's in sunlight cast shadows, including mountains and the such.
:drool:
Sunlight creating godrays, full shadows from buildings and objects, AND shadows from mountains!? The thought of how much more beautiful Cyrodiil would look is overpowering. I really hope you're right, and this can be achieved.
I remember checking this mod project out... maybe 6 months ago (I think it was this one)? I recall it wasn't going very well, and too many limitations were being reached, particularly in regard to a realistic water overhaul. I'm so happy to have taken another look and seen all this! The only regret I have is that all my time in questing for knowledge has been to further my artistic abilities. I would love to offer help here, but I have no knowledge in programming at all... I will provide as much support as I can though!
I do have a question, if you don't mind taking the time to answer:
Do these shader improvements (mainly the godrays) put more stress on the CPU or the GPU? I'm unlucky enough to have purchased a quad-core a year ago, so Oblivion apparently only reads my CPU as a single core 2.4ghz processor (curse you Bethesda), but on the flip-side I have a GTX280 which allows me to use the most amazing texture packs without any loss in frame rate. The CPU becomes a choking point when I have long view distances, or more than a few NPCs on screen at once, so I'd like to know if this mod would likely put more stress on my CPU, or be something that my GPU can deal with instead. Presumably both are used to some extent?