I have created a module that will play movies. It is kinda large, beats me why, but the instructions are included with the zip file. It was mainly made for making sigs/avatars with snapshots of the movies, and I can't get the zephlin and death-of-Radcliffe movies not to play at the beginning, btw, someone tell me how, but if you have troubles with it, post it here and I will try to fix it.
Good idea, but there's an easier way - grab a Bink player, then play the movie files (in .bik format) from the ~\modules\Arcanum folder. Enjoy.