I recently saw James Cameron's new movie, Avatar. It is a tour de force of computer animation and special effects. Unlike many sci-fi and action films, this one actually had a decent (if predictable) story. Movies like this really blur the lines between special effects and reality.
In quite a different way, the use of so-called Green Screen. (or more correctly, Chroma Keying) technology is doing much the same thing for movies set in actual locations. It is getting so that you can hardly tell what has been shot in the studio and what is real.
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