Phase 2, is the GeoReferencing of images to the Dem Earth object.
This works by using a Geomatching tag to drive a TextureTag and keep it accurately pinned to the Landscape.
As you can see in this video, this works without any additional shaders and works 100% in realtime and is accurate to within a few real world inches.
An image can be matched by hand, simply by setting the north,south, east and west boundary, or you can use standard and accurate transform values which can be found in *.map, *tfw , *.jgw or *.pgw format files.These are common world file transform values and are supprted by most mapping packages.
Also,another major delveopment is that the Dem Object now automatically downloads its elevation data from various servers on the fly, caching the files it gathers locally.This all easilly gves you a very easy way to do GIS directly in C4D.
Keep your eyes open for phase 3 :)