Yea I was surely surprised when I read that. I was not aware that obsidian made that significant a leap with the engine!
I'm guessing they're talking about 1.) Obsidian did a good job with textures, which isn't an engine enhancement so much as a good job by their artists and 2.) they sharpened up facial textures in some places by "folding" body textures and using the extra texture space to increase the fidelity of the faces.
If they do include that festival then I hope it's nothing too ridiculous.
Could be they're talking about Burning Man, but I really, really hope they're talking about http://fallout.wikia.com/wiki/Joshua_Graham from the Van Buren docs instead. According to the wiki (which I assume was taken from the Van Buren design docs) he was burned from head to toe. He just sounds like an immensely badazz NPC.