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They re-invent software rendering into the 3D graphics cardHonestly, a pixel shader is a small program in a specialized language that is executed for every pixel in the primitive that the graphics chip wants to output. This way, you can control the appearance of your output at a very low level.Doom 3 uses these for example to calculate per-pixel lightning based on normal maps. The result looks quite spectacular. Other uses include fresnal reflection on water (where you can see the sky being mirrored in the distance but can see through the surface right before you), dirty-mirrors effects, and much more.
Can't wait for Radeon drivers (Their getting the hint !!)