The new update includes tessellation and displacament mapping, high quality HDR motion blur, more realistic shadows, improved depth of field with sprite based Bokeh, parallax occlusion mapping, particles motion blur, shadows and art updates, and improvements in water rendering thanks to the mentioned tessellation and displacemnt mapping.
The new update also brings some improvements in DirectX 9 including realtime local reflections, contact shadows and improved tone mapping. In addition to those that are available via DirectX 11 upgrade pack, Crytek also released the Crysis 2 high-res texture pack that brings highly-detailed textures. Of course, in order to run such an update, you'll need a GPU that has at least 768MB of video memory, or 768MB per GPU in multi-GPU configuration, as well as Windows 7 or Vista 64-bit OS.
You can find all the goodies and details over at mycrisis.com.
