Thanks to everybody who contributed to this thread (recently or seven years ago). It was a great help! I finally got the cutscene video and audio running smoothly. At first, the video wouldn't show while the audio was working okaayy. I tried JUST switching the SafeMovie setting on the nvn.ini file, and that sort of helped, but didn't fix the issue. After that, I altered the compatibility settings on the nwmain properties in a bunch of different variations, but the closest I ever got to efficiency was the video MAYBE showing up and the audio stuttering. Finally, I updated my graphics drivers. The videos were then showing up, but the video and audio was stuttering, so I finally set the nwmain properties to:
-Compatibility mode with Windows XP SP 3
-Disabled the visual themes
-Disable desktop composition
-Disable display scaling on high DPI settings

And I set the SafeMovie setting in the nvn.ini file back to 1. This cleared everything up and it's now running like a champ (well, smoothly and efficiently, at least).

This is a Windows 7 64 bit OS with two display adapters (Intel HD 3000 and NVIDIA GeForce GT 555M).

I also apologize for resurrecting this thread but after wrecking my head for a couple hours I finally solved it for me. I tried pretty much every solution online and nothing seemed to work except running the game in windowed mode. Then just in case, I turned SafeMovie back to 0 and IT WORKED. Now I can run the game fullscreen, at 1920x1080, AND see the cut scenes.

In summary:
Windows 7 64bit.
Nvidia 1060
driver 430.86

Set the compatibility options of nwmain.exe to:
-Compatibility mode with Windows XP SP 3
-Disabled the visual themes
-Disable desktop composition
-Disable display scaling on high DPI settings

But instead of setting SafeMovie to 1, changeit back to 0.
It goes counter to all advice I've seen but it works, probably due to some change in the drivers in the past couple of years.