Well sorrrry! I never heard of it before and I thought it was just special to the mod, but thanks anyways...
Google can answer any question you have in a heartbeat.
Here's a really good visual example of SSAO for you though: http://www.youtube.com/watch?v=nYoGJP5z_U4&feature=related
Hope that gives you a good idea.
On a side note: I have something to bring up about Depth of Field.
The effect itself is amazing, there's no doubt about that. But have you ever considered 'when' it should be used? Any game that uses it (usually fps games like Crysis and Fallout 3, but also Uncharted 2 for example) only toggle Depth of Field on when you are aiming down the barrel of a gun. When you're firing from the hip, there is no depth of field, just as there is no depth of field when you're simply moving around without shooting at all. The reason for this (as far as I can tell):
When you look down the barrel of a gun, your focus point is always the crosshairs. You blank out anything else around and focus on that one point for clear, accurate marksmanship. If you move the gun to the left or right, up or down, your eyes also follow the crosshairs, as do your focus. But when you're firing blind from the hip, or just exploring, your eyes are free to wander as they will. They aren't focused on the crosshairs at all. So applying Depth of Field when you aren't aiming down a sight, implies that your eyes are always centred in your head, and the only way to look left and right, up and down, is to move your head left and right, up and down. It implies that you always have a strong focus down the centre.
Naturally we don't work this way. Our eyes wander a lot, and games replicate this by applying Depth of Field only when you are really focusing on a specific location or distance (like aiming the sights of a gun). Depth of Field is never applied outside of these situations. I suppose the Oblivion version of this would be to only apply the effect when you draw your bow string.
I'm not knocking the shader, as it really is gorgeous. But it feels weird having to move my 'head' in order to move my eyes. I can't glance down at the floor, or over at that plant anymore. I have to move my entire field of vision just to focus on something that's already in my field of view. I notice a lot of you are shying away from camera flare effects because they aren't realistic (props for aiming for realism), but don't you feel that a constant Depth of Field effect also detracts from realism? It's just not how our eyes work at all.
I should clarify i'm not making an attack against the shader, I'm just interested in other people's thoughts about how it works right now.