...well we all know EXACTLY how the story goes...
No one said they had to make the movie with the same exact story of FFVIII. What about after the end. They could make a story out of the events following the end of the game. Does Laguna and his two buddies go out and kick some ass? get in some bar fights? and squall n rinoa get married.. what about selphie? whos she hook up wit? irvine? i always liked selphie, if rinoa wasnt in the game she would be my girl. I think they would have no problem making a fresh story with the characters from FFVIII.

As far as cgi or actors... well i dunno there. i bet they could do a sweet job with cgi. i cant think of any actors who could play them well. Id rather see CGI.