yeah, it sort of works like a texturizeing filter, you give it a noise texture and it adds it to the texture on the poly before lighting, so as you get closer to the polygon it never starts looking burry, the implementation CP mentioned sounds like they also used some sort of mip mapping thingy, the effect would be no more intinsive than glowmapping, though it would require another texture stage.
I supose it could be hacked in the same way glow and shine maps were, texturename"-detail", but as I said, our texture handeling system is getting realy messy, I want to organise it before we start adding any more stuff like this.