1&2) These are things that are implemented near the end of the development cycle, not built around (at least from what one of my friends mentioned). So this means that they have the stuff in place and are just getting it 'melded' in properly and tweaking them for fidelity. And then they go on to describe how they get some of it done.
3) The "SOLID FOUNDATION" is referring to the system for sliding these cinematics into place seamlessly, not the base of the game itself.
4) The timezone thing he's talking about is how much work they can get done with the multiple offices that they have around the world. The EU offices toss the work that they finished over to the US offices as they're getting in, and vice-versa.