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Update for a long abandoned and currently unavailable addon. (original author: Norpse)
WoWVid lets the user create a viewport (in reality a specifically colored texture)
that allows them to watch videos in overlay mode while in the game.
*new* Ability to save the current settings as a preset,
for easier switching between media players.
Also comes with default presets for VideoLAN and KMPlayer now.
Prompted by the discussion here.
Overlay: Yes (according to user reports for VideoLAN player, KMPlayer and GOM Player)
The in-game addon is fixed and working with WoW 4.0.1.
VLC and KMPlayer instructions courtesy of Garual
You will probably also need from WoW to go into
Game Menu -> Video -> Graphics -> Display Settings and set to "Windowed (Fullscreen)."
Originally Posted by Garual