I implemented shadows in my game engine, they use Depth Shadowmapping and Parralax. Parralax makes my engine freeze and run slowly, so I turn it off. I also implemented HDR(you know what is it, if you have played HL2:LostCoast).
Yesterday I created a map showing my physics in action. I recorded a video:
Also -a gameplay video, showing "home" map in action. It's an old video, so there is no shadows here!