PSP homebrew developer charnold has come out with a rather impressive tech demo of his Dungeon Engine 2. The PSP Gallery Demo shows off the improvements that were made to the engine such as the rendering of of colored lightmaps and more complex 3D objects (as compared to the original build).

The demo is pretty sweet and allows you to walk around a virtual gallery. The textures, renders, and lighting look professionally done and is comparable to some of the games released on the shelves. The developer gave word that the lightmapped polygons are rendered in two passes or more, each with a different texture. There can be more depending on the image being rendered such as graffiti or glowing lights.

So download the program and try it out. Charnold has stated that this engine might even be developed into a game in the future, which is something that you might want to look out for.