You stll have gems to collect, but added to the task list are orbs, talismens, and spirit particles. The gems are to pay for special moves. The talismans are to advance to new worlds, the orbs are to open up special areas, and as the story goes, to send Spyro home. You aren't told what they are or how many, but you'll know when you've completed one because a special chime will play, and a blue extra-life butterfly will appear. After you complete them all 2 neat little extras will be opened up in your guidebook.
Graphics are even more georgeous then the first game.
Spyro even looks a bit older. I love the graphics, the worlds are beautiful. I spend hours gliding off high places and plunging into the water by holding X and square at the same time. I really like how the game changes views for you, which is easier than changing them yourself. I think it is harder and more fun than the old one.