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You're right about the video.

There have been a couple of articles on FR about that video and you're correct.

IIRC, it's a four hour video and the Schindlers have chosen to release to the media the sections where it appears Terri is alert.

She has a flat EEG and most of the cerebral cortex is simply gone; the Schindlers just can't accept reality for the television cameras although their testimony in court under oath tells a different story. They admit they know she's PVS.

Dr. Ron Cranford, a neurologist at the University of Minnesota, assessed Schiavo's brain function in 2001 as part of a court-ordered assessment. He was quoted in Florida Today as saying "[Schiavo] has no electrical activity in her cerebral cortex on an EEG (electroencephalogram), and a CT (computerized tomography) scan showed massive atrophy in that region."
Source.

Three Florida neurologists viewed 12 of Schiavo's CT scans on March 22 [10] (http://www.miami.edu/ethics/schiavo/CT%20scan.png). After viewing the scans, Dr. Leon Prockop (a professor and former chairman of the neurology department at the University of South Florida's College of Medicine) was quoted by the Sun-Sentinel as saying that Schiavo's scan exhibits the "most severe brain damage as I've ever seen." Dr. Walter Bradley, the chairman of neurology at the University of Miami's Miller School of Medicine, said that he "doubts there's any activity going on in the higher levels of her brain."

Source.

In 2002, a trial was held to determine whether or not any new therapy treatments would help Schiavo restore any cognitive function. A new computed axial tomography scan (CAT scan) was done, and showed severe cerebral atrophy. An EEG showed no measurable brain activity.