Hey Thamer,
Happy Holidays and I'm happy to see Firaxis here gathering as much information as possible. I just want to confirm what Harkonnen has been saying in that all background movement still continues when the wonder movies are being played. Workers still work, wheels still turn, water still flows, smoke rises, mines move, etc. etc. I've noticed that the first wonder movie typically plays fine, but each subsequent movie gets worse and worse in quality until eventually they don't play at all. I'm not sure why that is, but it is reproduceable every single game I play. I can send you along my Civ4.ini file if that would help you out. In version 1.00 I had no problems with my wonder movies. In 1.09, none of them would play. In 1.52, the first one plays fine then they all slow down and stutter until eventually they don't load at all.