Could you discuss the dynamic shadow technique you're using? They appear to be a form of shadow maps.
They are a form of shadow maps, though the technique we’re using currently differs from the one we showed at E3. Our initial shadow tests were done using cube maps on every surface, but after extensive testing we found them to be too slow overall to use as a general solution. We have switched to doing single shadow maps directed at characters. The system supports full self-shadowing and we do multiple samples and depth comparisons to provide a soft-shadowing effect. The net effect we’ve achieved is a system general enough to handle Oblivion’s diverse environments while still providing great visuals and good performance.
The Elder Scrolls IV: Oblivion, Technology Interview