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I played through this game with a friend of mine back when it came out. I found it to be quite enjoyable. It does use full motion video, but at the time it didn't really bother me, which is a bit surprising. I think for the most part it was done quite well, but there were definitely some times when we had some laughs making fun of a few of the actors. The game definitely does not sacrifice any interactivity though; even though there's a lot of video, there's just as much full-on puzzle solving, and I appreciated the fact that almost all the puzzles actually made logical sense and avoided the adventure game trap of being overly obtuse. I can't remember if we ever got really badly stuck... I think for the most part we were able to figure out the puzzles but we might have consulted a walkthrough a couple of times.
Definitely worth checking out for fans of adventure games.