That’s right, you are looking at a flat plane consists of 2 triangles running in the Blender 2.5 Game Engine. There is no run-time subdivision, no geometry shader, all the magic is happening in the pixel shader. It’s completely 3D looking, you can fly around it, there is light, shadows, bumps, shiny lakes, and even height-based fog.
Isn’t Relief Mapping great?
A big thanks to Martins Uptitis for porting the shader for Blender. I’ll upload video and a short how-to soon.