I downloaded some NWN2 videos from IGN last night, they have a few that show combat. The vids seemed to show that the gameplay paused every so often to allow you to command all of the party members. Reminded me of a option you could use in a D&D multiplayer game some years back, where the game paused on notifications of damage and detection. It definitely chopped the action up in the videos. Hopefully you can change options to give more autonomy to the party, and let the fights flow.
http://media.pc.ign.com/media/674/674385/vids_1.html