Hi,
I’ve stumbled upon this paper of a GI technique used in CryEngine 3.0 and thought that the Blender devs and community might be interested:
Information and video demonstration can be found in the following links:
http://www.geeks3d.com/20090811/light-propagation-volumes-in-cryengine-3/
http://alturl.com/brq4
Here is the paper in PDF: