I played the "Out From Boneville" demo (up to the middle of Ted hopping across the river), and it's okay. It plays more like an interactive movie, where you basically can't die. It somewhat follows the story, though it cuts out some parts, while adding some content.
The graphics look good for the content, and I think that it would make a good DVD movie. The only thing i didn't like was that sometimes, you don't know what to do next, and Smiley's voice overs just sounded horrible.