Yeah, I agree with serinity. However, there was a scene I think level 3 or so, where you have a torch sitting besides a pool of water. It is where you first get the secondary weapon, the valve. If you switch ShaderModel from 3 to 4 there, you will see a slight difference in how the lightning is being rendered. Although for me this doesn't justify the 5-7 fps drop that I get. With SM3 everything maxed out except shadows on medium, I can easily pull acceptable fps, with 25 fps being lowest I'd see.
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