I didn't say they should be using it, that would be arrogant of me. What I said was that they should use it if they're space constrained. So let me add option 4:

4- They don't need to use audio compression because they're not lacking space.

Your option number 3 has a problem. If they were as space constrained as they say, implementing lossless/lossy audio compression
would certainly have big priority. Furthermore, regarding CPU cycles, I heavily doubt they'd be so near 100% usage without having framerate issues in more packed levels. To have a stable game, you need to have a safety gap to 100% processor usage, otherwise you're just asking for trouble. It's not something I can prove, but given that lossless decompression algorithms are so light (many small devices do it without any problem), I think the probability of that being the case is extremely low.

I believe 2 or 4 should be the case.

If the cut-scenes are more than just pictures with narrations, then I'll be happy. I saw the improvements from Resistance to Tools of Destruction and I believe they said that they used and improved the Resistance engine for that game. Thus, I'm pretty sure that they'll improve what they've already done and add it into Resistance 2.

I also wonder how big this game will be (space and length) seeing as the singleplayer and co-op are going to be seperate.

Have you played RFOM?  It has one of the longer, more extensive SP campaigns around.  Next to the likes of COD4, GOW and Heavenly Sword it was positively massive.  If you played on higher difficulty and poked around a bit on the bigger levels it took way longer to compete than those games.

I think there is no reason to assume Insonmniac will be reducing the campaign length - if anything it sounds like they're taking the Jim Cameron approach to sequels "More is more"...  I'm expecting longer SP, bigger MP, bigger Coop more levels, more detail in the levels, etc. and I'm very sure that's what I'm going to get.

 how would it have 8 layers??? WTH?? There are only two layers. where are the other 6???

 Except it's bullshit. Texture streaming (which they implemented in Ratchet and Clank) hugely cut down on loading times for their engine. Data duplication bullshit for the fail.

 He's talking about the different types of discs. Most current PS3 games are on a single layer, for this game and probably all future exclusive titles will be on dual layer, should the boundry go past that, people have gotten the current laser diodes to read up to 8 layers on a bluray disc. Not saying they'll ever need 200g of data, but supposedly with a firmware update the PS3 could read it.

BAD dnnc, shoo troll 

It's only going to get worse for Microsoft. They shot themselves in the foot by not including some version of nextgen DVD on their system, and by locking consumers into tiny, non-upgradeable hard drives. Any one of these decisions was bad enough, but both at the same time is inexcusable.

Thats so true. Every game gets criticized on AA, FPS, etc. While you do want a game that runs smooth and looks smooth, some of the best games ever had crappy graphics. Thats why I see the generation as a huge failure thus far. If you Gametrailers or other review sites, you keep feeding the fire because it gets your site hits. Fanboys have so pull this generation its ridiculous.

 This is Sparta!!!!!!

OT: I don't doubt it, what with the single player campaign likely to be as long as in the first one, the second campaign, the 60 player multiplayer, new enemies, upped AI, etc, etc.

I can't wait for this game to come out!