That's not what the Far Cry team has to say:
From Far Cry support folder:
"Beta - Shader Model 2.0b Support in Far Cry
Activating Shader Model 2.0b in Far Cry Patch 1.2
1. Install Microsoft DirectX 9.0c (Summer Update 2004) Build 1221 or later.
2. Install ATI driver that supports Shader Model 2.0b
3. Install Far Cry Patch 1.2
4. Option 1: Copy fxc.exe from <DirectX 9.0c install folder>\Utilities to
<Far Cry Patch 1.2 Install folder>\bin32
Note that the default installation folder for DirectX 9.0c (Summer Update 2004) is “C:\Program Files\Microsoft DirectX 9.0 SDK (Summer 2004)”.
Note that the default installation folder for Far Cry is
“c:\Program Files\Ubisoft\Crytek\Far Cry”
Option 2: Copy fxc.exe sent to you to <Far Cry Patch 1.2 Install folder>\bin32
Running the Shader Model 2.0b Path in Far Cry Patch 1.2
1. Run Far Cry in DEVMODE: FarCry.exe -DEVMODE
2. Bring up the Far Cry console by pressing “`” (back-quote without the double quotes – this is also usually the key with a tilde, “~”)
3. Type: \r_SM2BPATH 1 to turn Shader Model 2.0b on, and \r_SM2BPATH 0 to turn it off. This can be done dynamically within the game.
4. Type: \map <mapname> to load a map. For example: \map research will load the Research map.
5. Type: \demo <demoname> to run a demo. For example: \demo research will run the Research demo (see below for information on scripting this).
You can confirm that the Shader Model 2.0b Path is being used from the legend “SM20b Path Beta” that shows up in bold yellow at the top left of the screen as shown in the Far Cry screenshot below. When Shader Model 2.0b is off, no legend will be displayed.
Troubleshooting
1. I am seeing corruption when I turn on the Shader Model 2.0b path. What is wrong?
A: Make sure you copied fxc.exe from the DirectX9.0c install (or the one sent to you) to the Bin32 folder in Far Cry (See step 4 above)
2. I tried turning on ShaderModel 2.0b in the Far Cry console but I don’t see the yellow text indicating the SM2.0b Path. Why?
A: Make sure you are using an ATI driver with Shader Model 2.0b support and you have installed DirectX 9.0c.
3. Why do I need to copy fxc.exe from the DirectX9.0c folder to the Far Cry folder?
A: Far Cry needs fxc.exe from DirectX9.0c which exposes Shader Model 2.0b in order to compile its shader files to use SM2.0b.
4. How can I activate Shader Model 2.0b from the command line?
A: You can use: FarCry.exe –DEVMODE “r_SM2BPath=1”
5. Can I set other parameters in the command line so I can create and run benchmark scripts?
A: Yes, for example, the following command line parameters will set different options:
FarCry.exe –DEVMODE ““r_SM2BPath 1” “"#demo_num_runs=1" "#demo_quit=1" "map research" "demo research" "#r_Width=1600" "#r_Height=1200"
This will run the demo “research” two times in the “research” map, at 1600x1200, with SM2.0b turned on, quitting after the second run. The results will be logged in the file “research.log” in the Levels/Research folder.
We recommend that you run a demo twice, and use the second score, as the first run usually includes the time to load FarCry dll’s etc. into memory."
EDIT: Just saw your edit
, you shoul add that to the news (about X#00 Ati cards also benefiting from this)