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I realy don't see why you guys doubt that a current engine correctly configured and polished can't give a rendering that is better then what they used back in 1997.
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I've played through AO recently, and, with my game developing hat on, can tell you that modern rendering engines can make backgrounds as nice, if not nicer than the vast majority of the backgrounds that can be seen in AO. Normal maps weren't even in use by 1997!
It's okay if you don't believe me.