Hi Guys, I don't know how many of you have Windows Vista Ultimate but if you do please do try out DreamScene Preview. It is available an update to vista ultimate customers only.
A program with which you can have a video playing on your desktop. This is exactly what I wanted.
Although, you need to have a graphics card that supports AERO. It only works with video files with .wmv and .mpg extension.
I'm loving it.
Do try it.