Legzman : Don't you remember that every GTA game has in-game cutscene, and it's the same thing for the previous teaser of San Andreas that occured about the same time as this one, it has been made with the in-game graphics, same thing for Vice City and so one, so I believe it will be the graphics, and don't underestimate those new-gen systems^^
About what we know of the game, firstly : It is for sure that it's Liberty City, why ? First in the trailer we can see a police car which is marked by those letters LCPD (Liberty City Police Departement) and we saw a lot of things like The Liberty Tree (which is the newspaper of LC) and others things that appeared on GTA 3 but also things that didn't appeared. Oh and for those who did'nt know Liberty City = N.Y.C, Vice City = Miami, etc... So about the things that are new, and for those who tought it would broke the coherence of the serie, I think it's normal. As you can remember, in the first GTA (those in 2D) there was three big cities : Liberty City, Vice City and San Andreas and so in the second generation (3D) we found again those cities but there was no links, the citie wasn't build the same way, the system wasnt the same, everything had changed, a GTA 1's player would'nt recognize the 3D version of what he played. So as GTA 4 mark a new generation, I think Rockstar tought they could have more liberty, without really linking with the GTA 3 generation, changing the system and rebuild the city, as they did with the previous generation. You can trust me, you won't play another GTA 3/LCS with awesome graphics, we now enter in a new generation which is going to be awesome^^