They begin talking about the Game Informer Gears of War 2 cover story at about 19:30. They don't talk too much about it (for obvious reasons), but they sounded super excited about what they saw.
* Graphics have gone to nutso level. Color palette isn't as washed out as the first game. The games looks like a matte painting from a movie.
* A lot of the game will take place underground. A underground level they saw had all this bio-luminescent plant life that animated.
* More weather effects. Snow was mentioned. Gibs on the snow!
* The derricks have these mine capsules that hold 2 guys. You kind of paratroop into the ground. So, this derrick goes out and picks up what looks like bullets with grinders on the end, and then shoots you into the ground. That's how you get around in the world and go to these different missions. These derricks are 3 stories tall.
* Epic is doing a lot to make the story better.
* The team at Epic is very committed to making Gears 2 multiplayer fantastic. Some of the things they heard over some cocktails are very very exciting.