I thought the action sequence was fun, but there were a couple times when I questioned it. When you're on the horse and you have to follow the cues, it was fine until you got to the point where both arrows flashed at once. That confused me the first couple times because I wasn't sure which way to dodge, then I realized that at that point you have to stop watching the arrows and watch the monsters instead to see which one is going to attack, so that transition between being led and not being led was a little clumsy.
Also, transforming the cursor to exactly match the on-screen cues was confusing. At first, I thought that just clicking on the proper side to dodge was enough, but Graham didn't move and I died a couple times before realizing that I had to move the cursor all the way over until it changed. If I had designed it, I would have created what I think is a better system; making a new cursor set that was always either dodge left or right (or whatever the corresponding directions are for the different views) depending on the cursor's position on the screen, then have the arrow cues appear, looking different than the cursor. If you click on the proper side, you live, if you don't, you die. I think those small changes would have made it less confusing. It was a neat idea and I thought it was handled well (though people without very good hand-eye coordination or reaction times may have appreciated a "skip" button like Space Quest had).