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the judges would be able to tell you hadn't used Max
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How could they be able to do that???
About live-action video, I think it should be ok if it is used in conjuction with 3D, to a certian degree.
Example: If the foreground is composed mostly of live-action people, and the background is all CGI that is comparable to FF and SW, then I would have to say that, in my opinion, it can be considered animated.
Even better, having live-action people in contact (I know there is a better way of saying that but I can't think of it right now) with CGI caricters.
Example: The scene in Episode II when OB1 is hugging Dex.