Eureka! This works! For the first time, I can see the cutscenes in SS2, "in game"!! I'm using the HOTU version :p. Sure, previously I've used the SS2Tool to apply the bugfixes, and Modmanager. Divx 5 is installed in my system too. I've located you... finally...
n.wegner created this cut down install.cfg and posted it on ttlg.com. The purpose is to avoid everyone having to change their install.cfg to point to the newly created RES-folder. Just drop this file into your SS2 Installation folder instead.