Wow, didn't expect that so early in the U3 engine life.
It is a great engine, ironically used worst by Epic in Unreal Tournament 3, with its painfully low-res textures after we were teased with the brilliantly rendered screenshots.
It's a great scalable engine that is one of the smoothest running but nicest looking at the moment. Batman Arkham Asylum is a recent game that uses it really well, especially with nice eye-candy its PhysX effects.