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I wonder how much of the actual FMVs will actually be redone? I mean it's going to be a hell of a budget to do better then the movies we have now, no?
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Well ground breaking FMV like the originals from AO aren't going to happen, that's for sure.
However I like the way Valve solved that with the Source engine and it's film maker. All the movie clips for Left 4 Dead and TF2 are done inside the engine with special settings enabled to create more detail on environment and characters. Basically they made models that were detailed enough for a FMV and then toned those same models down for actual use in-game.
A similar concept could be used in this case and if they do it right it wouldn't have to cost a whole lot.