Screen Space Ambient Occlusion (SSAO)

Ambient Occlusion (AO) is a type of lighting technique applied in-game to create more realistic lighting. AO simulates soft shadows created by two surfaces that are close together. Typically AO is rendered in realtime through Screen Space Ambient Occlusion (SSAO), a shading method which is able to closely simulate the effects of real AO with little loss of performance.
SSAO works by examining an onscreen pixel, and then comparing its location in the depth buffer to the pixels around it. Pixels which are close together but not coplanar (on the same face) are shaded to simulate soft shadows. To maintain playable framerates, it is not possible to sample every pixel every frame, so random sampling is used, which will inevitably create noise/grain which may be more noticeable with movement. To counter this, the SSAO pass is often Gaussian blurred to remove such grain.
The depth buffer is measured from the camera, and as a result SSAO is viewing-angle dependent - the shading may look different depending on where the camera is located. This can be combated by rendering additional information outside of the current camera's bounds.
SSAO in the Source Engine

Forcing SSAO on via ENBSeries (Shader Injection)


ENBSeries, a pass-thru DX9 DLL created by Boris Vorontsov, is capable of injecting shaders into renderers that call upon it in realtime. This means that ENBSeries can add custom bloom effects, SSAO, Global Illumination, and other advanced effects at the cost of performance.
To enable it, download the Half-Life 2 specific version from the ENBSeries website, and place it's config file and d3d9.dll file next to the main executable of whichever Source game you've chosen to run it on. Once ingame, you'll be able to toggle it on/off by pressing shift+F12 (Default), and adjust the quality of it's effects in it's main ini file.
Forcing SSAO on via Nvidia's Drivers (Shader Overlay)

Nvidia's drivers feature a method that allows for SSAO to be forced on in almost any game, thanks to a clever method of hooking into the current render process and retrieving the current scene's depth buffer through the video driver. Enabling this driver feature is as simple as turning it on within Nvidia's driver control panel.
Supported games
All Source engine games except Portal have driver profiles to enable Nvidia's SSAO. SSAO in Portal can be forced on by editing Portal's driver profile with an external application such as nHancer.
Graphical Bugs
Nvidia's SSAO implmentation was designed to be general purpose, and as such, does not take a lot of Source's stock effects into account during it's calculations. This leads to bleeding in scenes with heavy fog, which can be seen on the picture below. As a fault of the actual SSAO shader, Ghosting and other related artifacts, pictured on the image above, can occur. It is recommended that you use a more modern SSAO implementation that takes the scene's normals into account if you intend to design your own shader for use in Source.