Oh, and you're kind of correct, but rather I believe it was the first game to have live action video.

That sounds familiar. I'm still racking my brains trying to remember that first CDROM game. I can see the ads for it in my head. Damn you.

And, honestly, I didn't really like The 7th Guest, either. It was just a series of unrelated parlor puzzles. It was pretty to look at, though. But Myst was released about the same time, IIRC, and it was a lot better, IMO, even if it didn't have much in the way of animation.