The 2001 trailer was 100% scripted cinematic, and not actual gameplay. They built specific demo maps just to record video from to make a trailer. Everything you see in that trailer was phony.
The typical work flow there went something like this:
Designer would be assigned a task (build a new map, rebuild an old map, polish a bit of a map, etc.). Designer would work on said task for two, three weeks, a month, all the while lower management would be looking over it and making sure it was going in a "good general direction." Designer would move on to another task. A month or two later upper management would finally look at the work and say, "It's all wrong, do it again." Rinse, repeat.
Entire maps would be done from the ground up, almost to beta quality, and then thrown out simply because no one would make decisions early on in the process. (Read up on Valve's 'orange box' method of design -- that's how you make games)
Another example of WTF is the fact that there was one part of one map that was being worked on before I started working there. Nineteen months later and the same designer was still working on the same part of that same map... I'm not blaming the designer, it wasn't his fault.
I think the biggest problem that the company had in general is being self-funded. When you're a developer working directly with a publisher and you have milestones to meet it's a whole different ballgame. If you don't meet those milestones, you don't get any money. That right there will keep your project on schedule. If, however, you're funding it yourself, you don't really have anyone to answer to except yourself and you can quickly lose sight of just how much money is going out the door.
