Geoff has TR's take on Valve's cinematic effect movement posted today.

"All the effects are showcased in a recently released Day of Defeat trailer that was created entirely in the Source engine with in-game assets. Some effects will even make their way into Day of Defeat: Source and the Half-Life 2: Aftermath expansion pack. Here's our take on what these new effects can do, how they're implemented in the Source engine, and why they may drive the development of the next generation of graphics hardware."