Not "live" as in "in-game footage." I mean "live" as in real people in real places, with all kinds of home-made and Source engine assets thrown into the mix. A group of amateur filmmakers calling themselves the "Purchase Brothers" do it surprisingly well with Escape from City 17 - Part One.
It's really worth watching in HD. Start the video, click the up arrow in the bottom corner of the player, click the HD button, and maximize the player.
Cool video. They really got the sound effects of the guns and the combine down.
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