INSANE is a proprietary INteractive Streaming ANimation Engine developed by LucasArts.

It greatly compresses moving images so that high quality full-screen videos can be displayed even in hi-res graphics modes on the PC.

It was first used in Star Wars: Rebel Assault II: The Hidden Empire and then Full Throttle, Curse of Monkey Island, The Dig, and Outlaws[1].

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  1. Outlaws press release, as archived here (under "Company Line")