Graphics: Childish, charming, goofy and cartoon-like in a good way! I other words, great graphics. The visuals are truly stunning. Spectacular colours here. I haven't seen such colours since the Nintendo 64-days (that is one of the reasons I always liked N64 better than PS1: The colours. PS1-graphics were always a bit more grey). The Shire looks so beautiful you won't believe it. Reminds me of the "The Fellowship of the Ring"-video game from 2002 (the one that wasn't published by Electronic Arts, and that was not directly based on the movie, but the book instead)
Gameplay: Zelda-style 3D action-adventure game with a great deal of hack and slash.
Audio: Licensed to use the same music as in the movie (luckily), and I don't know if the original movie-cast has done the voice-acting here, but it sure sounds like them. Lots of funny details like Pippin screaming about breakfast all the time and probably also second breakfast.
I'd say this is kind of a better version of the 2003 video game "The Hobbit" with a different story. The game starts off right before the third Lord of the Rings-movie/book ends with Aragorn & co. standing in front of the black gate. The rest of the game is Samwise telling the story to his kids and revisiting the entire trilogy, with the player mostly playing the part of Aragorn. This is definitely one of my favourite Lord of the Rings-games, and thats saying a lot because all of the others have been superb in my opinion.
Now, all we have to do is wait for what could be the best Lord of the Rings-game yet: "The war in the North" coming in 2011.