These look game as. http://kotaku.com/photogallery/pgr4rain/1845795 This is what the Forza 2 demo should look like.
So long as that isn't pre-rendered cut-scene type stuff that looks positively great Though I STILL have friends who insist Forza 2 looks amazing and believe I'm blind or something.
They don't look pre-rendered to me. The car models are fantastic and the backrounds/tracks look good as well. As for the rain effects, in some screenshots it looks wicked sick, but in one it looks pretty terrible. I'm sure its just that picture that doesn't look great because all the other ones are pretty sweet. The picture I'm talking about is the one showing the red Ferrari from the front view with the sun shining on it.
Looks good but you have to take it all with a pinch of salt. Don't forget that Forza is running 60fps. You can tell the difference between Forza and PGR instantly when you spin the camera round the car.
I'm hoping this will be a step up from PGR3, I was really disappointed with that game, no-where near as good as PGR2.