All of the TF2 shorts where amazing and I think those where done in source with Filmmaker? There might have been some post production work to add vignettes or blur effects, but I'm pretty sure most of the heavy lifting in the Valve videos are done with Source Filmmaker. I agree it looks pretty rough... It's hard to tell…
Valve has never released Source Filmmaker, Mark. It's been promised to come longer than Episode 3 now. Unless you count a somewhat functional leaked version from the TF2 beta from '07.
I think Valve is only involved insofar as to provide the tools, and everything else is the filmmakers' doing. Considering how constipated the engine tools are, either Valve has been hoarding user-friendly versions, or someone convinced the director after plying him with copious amounts of alcohol.