Thanks, Bas, for the tech demo video.

I've always wanted to know what this new physics system Lucasarts been touting can do. From the looks, this Digital Molecular Matter (DMM) tech by Pixelux looks like it could even rival that of Havok's physics system used in Half-Life 2. I would clearly like to see this in action in any future Lucasarts game.

For all I know, that system will be implemented in the next Indiana Jones game and that upcoming Darth Vader title. By the way, if I remember clearly, this tech demo was shown behind closed doors at this year's E3. How on earth did they get hold of this video?
Leet, where did you find out that KOTOR 3 will be released somewhere 2006/2007? If you've found this from other forums or some fansite, I will be hard pressed to believe their statement. I would rather wait for the official statement from either Lucasarts or whoever's developing the next KOTOR.
EDIT: Forgot to add some impressions of the tech demo.