can only crytek do that on cryengine? i mean modify the program to implement that hair system or can be done in free sdk, indie license or full comercial?

http://www.youtube.com/watch?v=cECnvJeX ... re=related

<iframe width="560" height="315" src="http://www.youtube.com/embed/cECnvJeXXE8" frameborder="0" allowfullscreen></iframe>

or if i'm completely wrong maybe can be done just like that realistic car crash simulation video i saw here on crydev...

I'm curious to know how we can go about implementing this in cry engine with the new DX11 tesselation. The demo has special shader for it though, is it possible?

see Now I love these tech demo's but this is an old one with the Physx Hair Tessellation but let me ask you what games use this? Not a single one. we continue to hear this Next Gen term thrown around a lot but other then tessellation what do we see. not a whole lot is actually injected into games. Cinematic's do not count cause most of these are pre rendered and shown as a movie in game. that is not real time.
just cause some one in California with a PhysX SDK can demo it does not make it usable. In theory these are amazing but No one uses it. Cryengine doesn't support it. UDK doesn't support it. we are still condemned to game engine Polly plane hair. Yes Cryengine does have a hair shader but is not meant for real time simulation.

Please teach me new things Teach me I love learning new things about this stuff but we have little to no information available to learn these techniques.

Well now its part of the nvidia apex framework. Its in the udk afaik and ccp is using it in eve online (where it looks realy, realy good imo and represents cloth and hair movement a lot better then ce´s "crappy" system)