What is the deal with Pixel Shaders v2.0?

jfs1967

I was reading the nVidia driver designers have been unable to address "issues" (I am a non-techie on these details) concerning the performance rendering Pixel/Shaders v2.0. I recall that the card bombs in a continual loop test, or something like that. I would like to hear nVidia and ATI afficionados chime in on this. For example, has ATI encounter similar issues with the latest standard, or did nVidia basically send a "beta" product to market?

What is the story, the importance or relevance of this issue with pixel shaders v2.0 and an apparent architectural flaw in the nv35 chipset or overall architecture of the card? How does ATI compare in this category. I love my FX 5900 and it will do, but I am curious about this hardware issue and my impression that ATI caught nVidia with their pants down.