Me I'd LAN party with everyone running fraps this will produce a series of thirty second clips on everyones comp from different perspectives. Then crop the footage in video editor (free or retail) edit them together as you would like the story to run and there you have your in game cut scene. Using other pkgs like iclone or moviestorm it will be difficult to maintain consistency of image. As in it wont necessarily look anything like the game, unless of course thats what you want. I can think of many instances where this happens already modstly on consoles. The artwork looks great and the high rendered cut scenes look great but the game looks low res by comparison.
there just has to be light at the end of the tunnel, even if its only a birthday candle....and cake!