Tom, firstly good to hear from you

. I really dont care for getting into arguments on forums, its a waste of my time

. So here is my final statement on the whole HL2 thing

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All I was going off (other than my gut reaction on seeing hl2) is the fact that if you search in google with something like 'hl2 per-pixel lighting' you get a few pages stating that it doesnt use it and none that say it does (I thought that was the real debate between hl2 source and ids doom3 engine). Anyway, lets leave the entire topic because until either valve post on this forum or someone can come up with a definitive answer this could go on forever. Also, it doesnt really have any bearing on what I am doing, it doesnt really matter if they achieved xyz because I am going to release the demo as shader model 2 only at the moment, then I will look into doing the 1.1 version (ps2 is surely a minimum now, shader model 4 is coming out soon). FYI - I have tried compiling my current shaders as 1.1 and the errors I get are not that serious, so you are right it is possible and I will look into it more when I have everything else finished. There are a lot of 3D projects which are started and never get anywhere close to finished, I would really like to finish mine (at least 10 playable levels with combat, spells, secrets, puzzles, etc).
Can I also say that its weird how wide the spectrum is between peoples computers these days (amongst gamers), after posting on this forum and getting the general feedback about hardware I thought the average machine would be of higher spec. There are people still running 5200FX cards and on the other hand some nutter has dual 7800GTX's, its hard to know where to pitch it.
Yep the boxes and stuff do bounce off the creature and as he walks the boxes move out of the way, its really wicked to see it in motion.
Patto, I was the same, I really wasnt sure if it would work. But trust me, its works well and the 3D just gives it more atmosphere and enables me to create a more interesting world. Keep checking back, the demo is coming. Just looking at your specs, I think you may need more ram
Thanks for posting.