Hi, check out these two links describing Honda's next generation IMA system, for installation in the new Civic-hybrid this Autumn.
http://world.honda.com/news/2005/4050705_b.html
Video describing how engine and IMA work together
It looks like the major advance is a third VTEC mode, where all the valves are shut to reduce pumping losses. This allows two things:
1) Reduced engine braking so more energy can be recovered from regenerative braking.
2) A low speed EV mode, where the electric-motor alone powers the car.
I wondered how they were going to get this mode without stepping on Toyota's patents - fairly inventive I think if a little circuitous!
