This image shows some frames of the morphing effect. It is used in a game prototype, which is developed by LightBrain GmbH (Hamburg, Germany). I provided the graphics engine and have written several 3D effects for that prototype.
The effect combines vertex tweening, alpha and texture blending basically and is enhanced by environment mapping and blooming in the version you can see. Before it is possible to morph between two objects the meshes have to be preprocessed to calculate the movement vector of every vertex. Then the meshes can be transformed by a vertex shader to render objects with similar looking shapes.
I described more details of the algorithm in the book ShaderX³, which also contains the DirectX 9 source code of the basic effect on CD.
If you want to see the effect in action you are able to download a video (around 15 MB) from my homepage: www.lightrock.biz.
Thank you and kind regards,