Here's a pair of screenshots, they look very impressive indeed to be perfectly honest. Forza 2 has a scheduled release date of 'Holiday 2006'.

Product Overview: "Forza Motorsport 2," the sequel to Microsoft Game Studios' award-winning, fully customizable driving simulator "Forza Motorsport," speeds its way onto Xbox 360 this holiday. With authentic simulation physics, bone-jarring damage, photo-realistic graphics, and licensed tuning and customization options, the franchise improves on the unprecedented features gamers enjoyed in its debut installment. Loaded with more than 300 of the world's hottest cars for you to collect, personalize and tune, "Forza Motorsport 2" gives you a complete racing experience.