Oh man, this is probobly an ancient thread, and I completely appologize if bumping is not allowed. But just incase someone is searching for this thread and finds no answers. I'd like to give everyone an answer to the .DDV file playing answer.

http://www.digitald.com/products/masher/mash_desc.htm

That's how you make and play .DDV files.

Interesting. It's the software from Digital Dialect to compress and use DDV files. I suspect the price and coding ability is beyond most forumites though.

I tried this a long time ago, and you can indeed view some cutscenes with it.
I think there's a discussion about it somewhere on this forum.