I was just wondering, at the start of the game your in a wagon on your way to be killed, you get out of the wagon watch a guy get beheaded then walk over and get down on you knees to be executed, all without any control from you, other then moving your head around. Is it possible to do this with the CS or was it possible with the GECK or the oblivion CS?

Well it beats a FMV cut scene.

If you're asking whether it's possible to make similar cutscenes using the CS, then yes, of course. There is very little content in the actual gameplay you can not create with the CS.