CMR3 looks truly awesome.
I played CMR2 on a tv at a friend's house (hooked up my comp and all.)
He was FLOORED by the graphics and the sound.
He has both a ps2 and xbox, and is a hard-liner console HO, heh.
He openly oohed and aahed at the cubemapping and shadows.
As for the physics, i have never seen anythiong better apart for Grand Prix Legends.