Once with Windows Vista Ultimate, Microsoft has launched Dreamscene, o technology which allows Running movies and other types of video files directly in desktop background. With others operating systems Previous Vista Ultimate this technology is not compatible. Official. For unofficially, for XP exist Xpscene.
Xpscene can Turn videos or movies into desktop backgrounds only out of three simple steps (by creating a HTML file, controlled by Windows Media Player, which can be used as background).

1. Select the movie you want to run as Desktop Background (.wmv, .mpg or .avi)
2. Select the folder in which you want to be saved the HTML file
3. Create the HTML file
Then right -click on Desktop, select Properties->Desktop->Browse And choose the file as a background (background).


Xpscene is o Portable application and does not require installation. To be able to run Dreamscene videos on Windows XP it is advisable to have minim 1GB RAM and you have to install Microsoft .NET 2.0 Framework.
Note: In order to be able to select an image like a desktop background again you will need to enter the Panel Control ->Display.