Ok, here what to do:

1st off, place a few villagers

Secondly, get the villagers in cinematic mode using the "view animations" button:

[JPEG, (227.49 KB)]

Next, place down what your vills are gonna sit on (I adivise crate small as it is the perfect size, although you can use things like rocks and barrels depending on what you're doing)

Using Reyk's New Editor, rotate the villies vertically backward so they look as if they are sitting down

Finally, add in your eye-candy like campfires and flowers etc... and there you have it!

Now for using in cinematics, do everything above but now put in triggers.

trigger: loop = no | run immediately = no | active = yes
condition = always
effect = set animation (The animation to use is vill_cin102woundedone and select the unit)

Note: you must be in cinematic mode for this to work :P
Double Note: if you want them to stay sitting, click loop (duh). but if you want to stop it, add a second trigger and also a fire event effect in the first:

Trigger: loop = no | run immediately = no | active = no
condition = timer (set the timer for however long you want the animation to keep playing)
effect = disable trigger (choose the first trigger)

add dialog to it and a storyline to create cool cinematics!

Triple Note: Another thing i noticed with the vills sitting in cinematics is if you go out of cinematic mode, your vills are still in their cinematic form, so they walk around with one anim (it's really funny). They can build, but they can't attack :P

Enjoy!
-Mamshmam91