In the demo we witnessed today, we were wandering though a dungeon when we heard a large explosion. The screen shook and dust and debris fell from the ceiling. This continued as we moved up out of the tunnel where we were in and into a courtyard. We watched as 3 high level characters fought a huge red dragon. Then as the players fought, the dragon reared back and fire poured from his mouth. The players spread out to attack from separate sides and the dragon moves around to concentrate on a mage on his left. This was all very smoothly animated and was fun to watch, as the dragon finally crashed to the ground stirring up a cloud of dust and shaking the screen slightly.