We already informed you that R700 is a 55 nanometre, multi
core unified architecture and we even mentioned that this chip is aiming for
DirectX 10.1 support.
The biggest thing about the next generation marchitecture is the second generation tessellation engine. The R600 and Xbox chip, also known as Xeons, already have the fist generation tessellation engine but unfortunately this feature is not supported in DirectX 10.
Microsoft already promised to get the tessellation in DirectX 10.1 or whatever it ends up calling it. You can get much better terrains and high detail characters by using this method.
We won't tell you more about tessellation now as you already did last week here.