Whilst The Hobbit is basically one big CGI fest (really somebody should investigate the Peter Jackson-WETA connection for charges of conspiracy), and there was a fair amount of visual effects in the Lord Of The Rings trilogy too. Some of the most impressive trickery wasn't digital in the slightest. Basically every shot where the miniature hobbits share the scene with humans or elves, some sort of trick photography is being used. The hobbits are standing in holes dug into the ground, or like in the shot above - there is some sort of perspective thing going on, like Frodo actually sitting a good couple of feet behind Gandalf.
Tom Baker is the Comics Editor at WhatCulture! He's heard all the Doctor Who jokes, but not many about Randall and Hopkirk. He also blogs at http://communibearsilostate.wordpress.com/
