My 2 cents...
I think FMV means just that - Full Motion VIDEO. The term seems completely technical to me, so I think one must regard it as technical alone.
FMV = ANY sequence of still pictures, played at a high enough framerate to be considered "full motion" video (not just a "series-of-still-pictures").
This means that any video sequence (file) is FMV, regardless of it's content -
be it live actors or computer generated characters, it's still Full Motion Video.
This also means, as was said above, that game-engine created cut-scenes ("in-game") are NOT FMV. The game doesn't switch to playing a video clip.
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