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That mode 7 style example looks amazing. Is it actually using software to render this (faux 3d) or is it faking it with 3D routines?

It is using gpu acceleration to rotate and scale the background but it isn't using 3D.  The example comes with RCBasic so you can look at the code.

There is also a library available on the forum for using 3D but it is really only capable of Saturn/PSX level graphics.

PXS and Saturn graphics? MY FAVORITE! :D