Thought the talk would be more interesting but overall is a same rehash of the classic spherical harmonic lightting scheme with a little twist. This time, they dynamically precompute a octtree structure of SH vectors for a scene, allowing the run-time to pick and interpolate the vectors at run-time for dynamically placed objects.

However, the main problem with spherical harmonics in general is that it is hard to scale it to work with a dynamic scene as the cost of generating the SH vectors are high. Overall, it works well for pre-canned demos but still is hard to apply to most real-time gaming scenarios...