Yea majority of the models are hacked out of respective games (not sure about FF7:AD Tifa though), but there is still alot of work needed to pull it off.
Only gripes I have is that the hand to hand fighting (or rather kicking) is abit slow and uninventive, and maybe the female voices/sounds are rather similar.
The first Dead Fantasy is now available in HD and downloadable, and seems slightly better due to the more dynamic close camera angles and the closed surrounding feel - you appreciate the detail more because you get more close ups!
But looking forward to the sequals (check his main page on
www.gametrailers.com) for info to go with the vids.