Hi,
why did they do the cutscenes as FMVs and not did not render them with the game engine. They are obviously given the look as if they were rendered by the ingame engine but using PCSX2 gives this fake away.

Being able to render the actual game high-res one is left with fugly low-res cut-scenes (some people here claim that FF-X ingame looks better than its FMVs - i respectfully disagree).
Reading some reviews on gamefaqs.com i caught myself laughing out loud reading how ppl praise the use of the in-game engine to render cutscenes.
Fooled ya, Evil Dave

well, on the PC version it's all AVIs with some of the game overlayed, I suspect it's much the same. As such.. FMVs in PCSX2 are not completely implmented, and it's still somewhat buggy at times, this could be a cause for it to look worse.

Yep, well known thing. Developers said that PS2 is slower than GC so they HAD to prerender cutscenes. And PC version was just ported from PS2, not GC - that explains why it also had FMVs.
PS Also I tnink that this game as PC game was complete failure. Controls were idiotic and unplayable without controller of somekind

Given its lesser processing power, another alternative would have been to make the cut scenes less detailed.
I guess , though, that would have taken more work than to just make a FMV out of a GC-cut scene.
It just feels somewhat absurd, playing it on PCSX, the FMVs looking SO much worse than the actual game.
And it's got nothing to do with faulty emulation @ Saiki, it's because they are low res compared to how you
can render the game with a good gfx card.