That's right, it's been over two years since Killzone 2 was first shown, and this is the first in-game screenshot shown to the public:
It's a bit small and there's really not much to judge, but it's looking good so far. We should be seeing more info starting at 9:30 PM PST today just after the Microsoft press conference, as Sony has set up an even just for Killzone alone. Expect more at the Sony press conference tomorrow as well, with a playable version expected to be at E3.
This could possibly be the biggest game of E3 this year. Gametrailers even lists it as the number one most anticipated game of E3 2007.
EDIT: HD TRAILER!
All of this trailer is 100% realtime from a pre-pre-alpha build of the game. I can't even imagine what this will look like later in development considering the framerate is so smooth right now (less optimization needed at the time).