Graphics are less spectacular than Oblivion and the engine doesn't seem to be optimized at all. I'd say the graphics are on par with what Source and Unreal engine 2.5 are capable of but the requirements are certainly higher.
It's still too early to judge the gameplay. The look and feeling is very different from any other fantasy RPG out there. Sure there are dwarves and elves but this is a gritty, dark, dirty world which reeks with decadence and corruption in a subtle but convincing way.
Unlike Oblivion there ARE dialogues with choices here
And they do carry conseguences. Combat is a bit like Baldur's gate with some real time elements in it. It's also possible to pause any time and do some actions while paused. I think it can please both trigger happy people and those who prefer something less intense.
I've played about 4 hrs tonight and the game never crashed. Here are a couple of promised screenshots; two are from cutscenes but they use ingame assets, at least I think so: