yup, and this can be set up to teselate by just about any value, I'm thinking this can be set up so that only on the highest detail levels this will ramp up from nothing to some user specifyed max teselation level as you get closer to the object
and you will note some 'cracks' in the moddels, there is a way to fix this, it should be far less notisable on most user models though (untill people start useing the facet build of PCS, wich they should) and this will _not_ fubar hard eged ships like the Ursa or the herc (well actualy the herc does get a little fubared, but it needs to be recompiles as it's normal data is screwy) it uses the normals of the polys on the ship to teselate new polys, so if the ships poly shadeing is fairly flat the resulting teselated surface should also be flat