For some reason I want to say that Todd was referring to their engine that was being updated. Usually when I think of "technology" in reference to a game, game engine is what comes to mind.
I'm not sure what we could expect technologically. Probably the best places to start would be some of middleware links on everyone's sigs. However, this is probably considered off topic since they clamped the title to speculating the "when" and "if" of TES:V and not the "what".
Well, discussing the technology is too far off the topic, but discussing what they are doing to the engine is on topic due to its connection with how long it will take to make TESV. I expect it DOES have a lot to do with much of the middleware you see around here, like Umbra and other animation programs (like animated clothing, for example).
I forgot, when did they say they'd started working on their engine? That DOES represent a large problem with an announcement of TES V, because you can't work on a game if you don't have the tools created yet to do it, unless they created in peacemeal, because from what I hear creating the game world itself is actually the shortest part of the development, while voices, mechanics, and balancing take the most.