Since a few weeks now, Raydium provides a support for GLSL (OpenGL Shading Language), allowing Toon style rendering, Normal Maps, Water effect and so on. The doc is not ready yet, but a demo application is available in current sources and SDK, and a water demo will come (very) soon.
A video is available for water effect :
click here: http://freeway.raydium.org/captures/rayShaderWater.avi
Also, new effects are about to be added to the engine, including environment maps (reflections) and ... HDR post processing !
More to come !