GameSpot has posted the third edition of the designer diary of The Sims 2. This time VP PC Development Lucy Bradshaw and Creative Director Charles London. They mainly talk about moods. They talk about how Sims now do not 'live in the moment', but you can see their emotions constantly. Examples are shown of a happy, a depressed, a shy and an outgoing Sim. This diary is somewhat special: it comes with a few clips. They also talk about "memories" of the Sims. Here's an example of how that works:

"[...] Not only will a sim remember if he or she was jilted by a lover, but another sim who witnesses the event will also remember it, and will be able to share it with their friends. After the breakup, the jilted sim might still be reeling from heartbreak. A friend who "heard it through the grapevine" can lessen the pain with a simple pat on the back. However, salt can also be poured on the sim's wound when he or she sees his or her old flame with a new love. It's this type of context that introduces surprises, crazy successes, and failures to the game--along with a dynamic new strategy."

You can read the whole article right here. Along with that, they've posted 4 short clips showing the moody Sims in motion. Those can be found at the media page. You need at least a (free) GameSpot Basic account to download the clips. Together (High-res QuickTime versions) they're about 5 Mb, with more than half of it taken up by the Shy animation (2.9 Mb). There are also MPEG versions, which can be played by most regular media players (so you don't need QuickTime). Although those are smaller and thus faster to download, the quality is poorer compared to the QuickTime versions.