Cut scenes:

[Melf]

I prefer animated cut scenes (Lunar, Wild Arms, Alundra) because the art work is usually pretty cool. In-game cut scenes are best for the complete gameplay experience because they don't distract from what's happening my cutting into the action to load a scene. It just flows naturally. CG is cool but I think it's overused. FMV just sucks all around.

[Taito]

I like either realtime cutscenes a la MGS and company, or FMV cutscenes that use ingame models a la Xenosaga or REC:V.

Most of all I prefer cutscenes that offer the option to skip entirely if you want to.

[James]

Much as I really, really like gratuitous anime, I voted for game-engine cut scenes. True, a lot of the time you get weird lip-synch issues (when the lips move at all), but I find that it's less jarring to not switch from one visual style to another. It just seems like a more natural fit with the game I've been playing up to that point.

Not that I'll ever complain about a good anime opening or closing scene, of course.

James

[Josh]

CG. The ones in FFX looked hot.

[gamevet]

I voted for animated as well. I loved the ones in Lunar, Vay and Snatcher. The cut-scenes in Ace Combat 4, also had that old school feel to them as well.

[Green]

Animated cut scenes in games are usually sub-par compared to actual anime. It's hard to choose between in-game and FMV, but I'll go with in-game cutscenes. While you can do anything with FMV, it's pretty amazing to see your character go from the standard game animation to actually moving around and talking like it's natural.

[Bar81]

It depends. Generally, I like the animated ones but I'm pretty good with Team Ninja's latest CG work

[Jeremy]

Animated cutscenes, the ones used in Sly Cooper rule the universe.

[Clash!]

Cutscenes, I am starting to dislike them. But I also dislike a lot of story in most games as well. I want less cutscene and more "finding a way to show the story while I am actually playing the game".

[FX]

Anyone that says FMV deserves to be kicked square in the nuts.

As for my prefence, either CG or in-game graphics work, but I'd prefer CG the most.

Considering that we've been getting jipped of our CG for the last few years. Most Tekken endings make NO sense, and Soul Calibur 2 needs some real CG endings.