The graphics update will bring game into relative crystal clarity, giving players all sorts of terrain -- grass, sand, and ice -- that was almost indicated more by color than anything until now. Cataldo gave fans a preview, but promised that it was going to get even better: "Also keep in mind these are not the completed versions. There is still some more finishing touches to be done, but we wanted to keep you all informed about what we have going on here."
While the update looks gorgeous even in its unfinished state, there is one caveat to keep in mind: "To make sure we're clear, our engine didn't get any changes to it. Which means we can't render water the way most modern games can. It will still be a flat, non-moving texture the same way it is now."
We'll be anxiously awaiting more updates, and in the meantime join the discussion in the original forum thread.
[Thanks to Greg for the tip!]