Yes, that's what it looks like in the game. I just bought it. The edges have a kinda "fake" texture to it, but the water surface is awesome. Keep in mind that this is running on a Intel Pentium III based CPU running at 733mhz, nVIDIA GeForce 3 based graphics chip and 64mb of DDR RAM. Ubisoft Montreal did a great job recreating the game to utilize the full hardware potential of the Xbox.
Imagine this game with the power of the Xbox 360... O.O
Just a note for you FarCry fans: FarCry: Instincts isn't a sequel or any extension of the PC version. It's a completely seperate storyline but with the same characters (i.e. Jack Carver, Val Cortez, David Doyle, Col. Crowe, Dr. Krieger etc).
You know what doesn't add up to me? Everyone thats anyone says Xbox is the way to go...Why did the PS2 beat it out 3 play stations sold to every 1 xbox...
Xbox released about a year after PlayStation 2 launched, therefore giving the PS2 TONS of time to gain sales (keep in mind, when PS2 launched, it was the most powerful in the market).