Glossy reflections and refractions in the internal renderer has been wanted by lots of users for a long time. Now development of a new patch doing this is shaping up. Matt Ebb (broken) is developing this patch with the assistance of Brecht, the developer of the Sub Surface Scattering in Blender 2.44. The results so far are very interesting.
From Matt's blog mke3.net:
Previously, I've grumpily complained that there aren't enough people interested in working on Blender's internal renderer, and so it was only fair that I put my money where my mouth is. I mentioned I'd been doing some coding recently, and this is one of the products of that time: blurry/glossy reflections and refractions in Blender's internal raytracer. It works similarly in concept to yafray's â€˜conetrace', sampling a cone of rays around the current pixel to get an averaged, blurry result. The sampling is using a quasi-monte carlo Halton sequence, which Brecht van Lommel previously converted into C code in an old experiment of his, and which he gave me a lot of valuable help with - thanks a bunch, Brecht!
This has been quite an interesting (though sometimes frustrating) learning experience for me, diving into a new area of Blender's source code for me, and learning about many concepts I was previously unfamiliar with. What I've got so far probably isn't perfect, but I'm very happy with the progress made so far. I'll post again soon about some of the process and things I've learned so far, hopefully in a way that people not used to reading technical SIGGRAPH papers will get some value from. But for now, here are some pretty pictures, and a patch! There's also a bit of discussion in this thread on blenderartists.org, too.
Matt has provided a Windows build for testing purposes in the thread mentioned above. Please let him know if you find any bugs. Be sure to read the thread! It has lots of images and good explanations along with them.