After finding several bugs in my Parallax Occlusion Mapping effect file, I think I finally have it working properly now. It actually took much longer than I thought it would to get all of the theory figured out for exactly how it works and all, but I have a good handle on it now.
It doesn't look very realistic, but I made another demo video with the height scale cranked up for viewing the parallax effect. Video: POM_Divx60.avi
Check out the video and let me know what you think. I would be interested in hearing your comments.