The graphics are outstanding. This thing really requires a fast machine though. My 512MB machine ground to a halt. Really needs 1GB to run.
But, it is so incredibly realistic that it feels like being there. They have a "bullet time mode" where you can hit the CTRL key and for a few seconds slow everything down. That's a great feature.
This game was best of E3 and understand why. Beside being a first person shooter, FEAR is also a horror film where there are ghosts etc. Some great review already on "weapons":http://pc.ign.com/articles/644/644559p1.html for instance. To release in October they say.