I've just downloaded a demo from Epic of their Unreal engine implemented for the iPhone. The free app, called "Epic Citadel," is a full 3D environment that you can walk through and explore. It is pretty amazing -- swift, responsive, insanely high-quality graphics, textures, lighting, reflections and animation (trees sway, leaves fall, water flows, birds fly in the sky and flags flap in the breeze). Actually it reminded me very much of Uru.

During the recent Apple Event, this was demoed live by Epic, and inside this environment they also demoed a PVP battle game (not yet released). While not Uru-like in and of itself, the PVP did demonstrate that this environment was sharable between distant players.

Epic claims they created this environment in 8 weeks with a small team. Best of all, "Epic’s Unreal Development Kit (UDK), available for free download at www.udk.com/download, ships with the same tools and technologies used to create “Epic Citadel.” Anyone can create games with UDK."

Read about it here.
See screenshots here.
Watch the demo and walkthrough (also in HD).

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Montgomery - Maintainer Grand Master of Inspections (ret.)

http://mystonline.com/forums/viewtopic.php?t=22105

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"Even monsters from under the bed have nightmares. Isn't that right, Monster?"
"What do monsters have nightmares about?"
"Me!"
--The Doctor and Jeanne-Antoinette Poisson in "The Girl in the Fireplace.