you can do shaders similar using normal and spec mapping and bumpfx and entity fx. i have it working for my x10 and very well, it works good with my spells. light spell is great and my fireballs.
also you need to place lights etc.
in other words read the manual and learn the way lighting works then learn modelling and textures then when you understand this you will know how to do shaders and normal and specular mapping.
although if you type in the thread search type normal mapping or specular mapping and then read the way to make a normal or specular map.
manual is a hive of information, at first i was too excited but then after a while realized i was limited so i searched read and experimented and im at the place where i can animate texture do fx make characters small amount of scripting etc. so be patient my friend and all will come in time.
also the video is x9. with nomad soul getting google code and incorporating into his x9 open source. in other words this is future x9 v1.17 which has all what you see and will have more.
an unquenchable thirst for knowledge of game creation!!!