In an interview with 343 Industries, many questions were answered. The developers confirmed that they updated and fixed all of the graphical areas where Halo lacked in the past (primarily the potato faces). You can check out the full interview with the Examiner by clicking on the link in the first sentence.
Also, here is a video that is released showing off the new Halo 2 graphics!
What do you think? Is 343 making Halo better? Let us know in the comments below!