In a 2D action game how would you successfully implement a cut scene that doesn't kill the moment? What i mean by the moment is when your halfway through a level and your having a great time just navigating the level and skill fully destroying your enemies when all of a sudden the screen fades into a 1-3 minute long cut scene.

Even though its one minute long, it breaks the pace and that moment that you were having a while ago just went away and now you are dreadfully bored because an annoying cut scene which you have to forcefully watch, to waste your time by trying to make you care too much about some character or etc. Most of the time you don't care because that moment you were experiencing was enjoyable and required you to be very active and i think that i the most part a cut scene would ruin that moment.

Would it be a good idea to rather leave the player alone from cut scenes for the first level and after finish that level give them a cut scene to kind of relax and enjoy as they wait for the next level?

Unless you have a particular reason to "kill the moment"--a shocking revelation, or a sudden subversion of the player's sense of control, or even just a turn in the story, for example--I'm inclined to think that it might be preferable to not interrupt gameplay that's in full-swing with a non-interactive cutscene.

There is however a middle ground that might work, depending on the circumstances: have the cutscene play out, but leave the player in control: have the NPCs approach the player and talk (without locking the player into a dialogue screen), have scripted events play out (rocks falling, buildings lifting off, etc.), but allow the player to move around and act freely. If the player decides to ignore the NPCs, let them.

I see so kind of like most RPG's but you aren't locked to dialogue and the player can move while the dialogue is happening. Would you say its something similar to Dynasty Warriors dialogue systems such as when you're playing you hear the characters talk and a little dialogue is shown up at the bottom. But say if you wanted an NPC to give you clues where to go next, wouldn't that kind of distract the person playing since they're focusd around getting to the next level?

I'll admit that I've never played Dynasty Warriors, so I'm not in much of a position to comment on that.

As to distracting the person, I think that this is a matter of level design: it should fit into the flow of the game at that point, and make sense for the player to want to stop. I really don't know your game, and so it's difficult to give concrete advice.

With respect to giving clues, if the player wants the clues then they might already be slowing down, wondering where to go; if they already know where to go next, then they can choose to skip the clues.

I see. Well in Dynasty Warriors when your on a mission you get dialogue between certain characters which reveal certain bits of their back story that pops up at the bottom of the screen while your going through hordes of enemies in a 3D beat em up style.

My type of game will be an Open World 2D which is maybe a little ambitious. Its a game which is influenced a lot by Devils Castle(Castlevania) and Rockman (Megaman) which will have levels that are more linear and require challenge and skill while remaining Open world like and contains exploration.

Fair enough.

In an open-world game, I imagine that there will likely be natural (or crafted) regions and moments in which the action lulls; those might be good points for non-interactive cutscenes (on top of that, as mentioned earlier, there may be occasions on which you do want to interrupt the flow of the gameplay).

Another thought occurs to me: for clues and the like, why use a cutscene rather than a player-activated dialogue? That gives the player a degree of choice as to when and whether to activate the clue. This may also be useful for general exposition: the player gets to activate it somewhat at their own pace, and perhaps even ignore some of it if they prefer to stick to the action elements.

that moment that you were having a while ago just went away and now you are dreadfully bored because an annoying cut scene which you have to forcefully watch, to waste your time by trying to make you care too much about some character or etc.

Solution easy: don't have that kind of cut scene.

At the bottom of your cutscene in a small unobtrusive text, say:

[Spacebar] Skip cutscene

Bonus points if you forget to implement the code to make spacebar actually work.

Having cutscene in the middle of the game can be annoying, but if you put it at the end of a level it becomes more like a reward or a transition, and don't really break the gameflow.

In a 2D action game how would you successfully implement a cut scene that doesn't kill the moment? What i mean by the moment is when your halfway through a level and your having a great time just navigating the level and skill fully destroying your enemies when all of a sudden the screen fades into a 1-3 minute long cut scene.

I think that's a matter of pacing. If the gameplay is engaging and fast-paced, any cutscene that would block the control of your character would need to have the same pacing to keep you entertained. You can address this with your (cinematic) writing -- making the cutscenes concise and intense.

Another thought occurs to me: for clues and the like, why use a cutscene rather than a player-activated dialogue? That gives the player a degree of choice as to when and whether to activate the clue. This may also be useful for general exposition: the player gets to activate it somewhat at their own pace, and perhaps even ignore some of it if they prefer to stick to the action elements.

As a precedent, Mega Man X6 uses this for backstory cutscenes.
At the beginning of any level there are obligatory dialogues and "slideshow" cutscenes, but during the gameplay a special symbol appears to indicate that you can experience an optional dialogue cutscene if you hit the appropriate button (it's the "select" button if I'm not mistaken). If you keep walking for a while without activating the cutscene, the symbol goes away.

It can be seen at 00:46 in this video (bottom right corner of the screen):


This means that backstory dialogues can be skipped entirely (which is especially convenient if you're playing the pirated japanese version of which you wouldn't understand anything anyway).
However, there are also some cutscenes that involve some significant event (such as altering the level in some way, introducing a new mechanic etc.), and these particular cutscenes block your control and you are obligated to experience them.