Was just working on this--try opening the attached html file (see below) in a text editor and change "test.mpg" to the name of one of your videos. Put the video in a folder with the html file--and then open the html file in IE--does it play? If so, you can present this simple HTML page as a background to any item--simply modifying the the name of video clip. For the background, just specify:
Code:
embed.htm (t.1,l.1,w.5,h.5)
Or whatever works given the size of the video. There are other settings you can change in the html file if you want to experiment.