George Lucas is onstage at D5, with his video game guy. He's talking about building game characters that the player can "buy in to."
First up, the water effects in Pirates of the Caribbean: At World's End. If you want to make a maelstrom a mile wide, Lucas has your guys.
Next up, a preview of the game, Star Wars: The Force Unleashed. One of the concepts is to "amp up" the Force--allowing players and characters to do much more Force-y things than we've seen in the Star Wars movies. For example: picking up stormtroopers and flinging them to their death (or at least grievous injury). Basically, it's Half-Life's gravity gun. Without the gun. Looks like a lot of fun.
Also, using a technology they're calling Euphoria, they're giving nonplayer characters a "nervous system" to allow them to react on their own, rather than having scripted or animated responses to game events. The demo showed Indiana Jones balancing on a wobbly bridge--very convincing. It's all to create "unscripted" interactions.