Insomniac already said the cinematics would be pre-rendered. Not so they could make them pretty though, but so they could be rolling this footage and have the PS3 do some other stuff in the background.
So I don't really know how close this is to the game, but it looks damn good.

Resistance 2 will be huge.

As i'm sure you don't mean Common Gateway Interface (as they most certainly are not pretty) I'll assume you meant that the trailer boasts pretty Computer Generated Images.

If my assumption is correct, I agree with you; they sure are pretty, and they sure are computer generated images.

Looks AMAZING, a massive improvement from R1, cannot wait.

 so everybody is drooling over a video file then...

Basicly yeah. But judging from the road they took with R&C they want to make the transition from cinematic to gameplay as smooth as possible, so I think the game is going to look a hell of a lot like it.

Looks amazing.

if this is a cutscene will be in the game that why are people complaining saying that its cgi when even if it is, they arent going to make this look this good then make the ingame where you play look alot worse... that would be stupid

Looks totally amazing. Insomniac have done a great job with the graphics.

Looks great so far, well polished up as anticipated.