Deviation59 on 16 October 2007
The "CG" as you put it is all in-engine. Because they only have to worry about rendering, however, they're able to add more gloss in the cinematics. This is the same way the MGS series does it (though I believe all of the Ratchet games on the PS2 used CG for their cinemas).
If you're having trouble with the lock-on aim, learn to strafe. Also, pay attention to the enemies because there's always a lock-on reticule. As far as the manual aim goes... if you really want to, you can play the entire game as a third-person shooter and the aim is as smooth as can be. The controls seemed very tight to me, not average at all.
