The video demonstrates a very curvy, twisting path. Waypoints may not work well for this because you need to use too many to get smooth curves.
My first instinct is to try making a path with bezier curves down the middle of the "roadway" and automatically rotate the player to the angle of the line tangent to the curve nearest their location, which would still allow them to strafe across the road. I don't know if you're up to that, though.
EDIT; By the way, Shaun, it's one of those 3D Sonic games, if that gives you any idea
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