Ragdoll is the technology of making the CG animated characters to act like a dummy in the scene. The advantage is for example if you hit a character with a gun like in the game Counter Strike Source, the character you've been hit will fall down or basically a dummy when hit (you know what I'm saying).
Euphoria is more advance than ragdoll physics is more one of kind dummy with brains, you know what that means? It has it's own movements and reacts faster to the enviroment in short AI(Artificial Intelligence) is present.
One big breakthrough for game developers and animators in Animation, because DMS (Dynamic Motion Synthesis) technology is here. And making each character animation comes to realistic movements. No more hustle coding each movements, key-frame animation and motion animation.
Euphoria animation use the CPU to generate "on-the-fly" as the game played. Means that every character animation during gameplay easily response to euphoria in short more realistic movements.
Natural Motion company started this kind of technology and published/used in the games for such console like PlayStation 3, XBOX 360 and PC.
This technology mixed with AI, more realistic body movements and physics. Next generation animation and games make more livier than we thought.
For more information about the company and technology visit, Natural Motion Main Site
The company offers products such as
1. Euphoria- is able to create truly unique game moments.
2. Endorphin - utilises this approach to dramatically accelerate the production of offline 3D character animation.
3. Morpheme - is an advanced animation engine and powerful auhoring tool chain.
You can download and try Endorphin LE (Learning Edition) for DMS animation learning or you can watch DMS demo on their site @ http://www.naturalmotion.com/endorphin.htm.