ATI does not support the palettized compression so we needed a better solution.
I wonder why they didn't try 3Dc since ATI is saying that it is used in Ruby demo to compress normal maps, so you don't need 512MB graphic card.
EDIT: ...so you don't need 512MB graphic card to run Ruby demo. That is what I meant to say in first place but i gues I dident say it right.
Sorry for my english