Flameduck: it is the medium in which people record events
within game environments and edit the footage into movies. Like
This hilarious little dittySammy: I haven't tried it myself, so I can only speculate. But
I can tell you that 3DSMax and The Movies are
worlds apart
and can't really be compared easily.
For example in Max, you model your character from scratch
and then adjust every keyframe for every limb for every pose
he has.
And in that
game you choose an avatar, dress him up
how you want and give him a series of pre-animated
motions to go through. As far as I know, you can adjust
certain attributes to the character's actions, like "Do that
faster", "Be angrier" or "Don't punch so hard", etc.
Visit the link I provided to get an idea of what I'm talking about.