DreamScene is only available for Windows Vista Ultimate users, but with this method, it can be made available for anyone with a copy of Windows.
1) Download the latest version of VLC Player here.
2) Open your video file, right click, and choose wallpaper.
If you do not see the wallpaper option then proceed to:
Settings > Preferences > Video > Output Modules > Direct X (in VLC player).
Once you get there, check the Advanced Options box in the bottom right hand corner.
The advanced options will appear. Check Enable Wallpaper Mode. Now when you right click on your videos, you should be able to see a Wallpaper option.
If you want VideoLAN to behave like Dreamscene, you obviously do not want to see it in your taskbar since you will be running it for a long time. To get rid of its appearance in the taskbar:
3) Proceed to Settings > Preferences > Interface > Main Interfaces > wxWidgets
5) Then uncheck the box beside Taskbar
If you want to reach VLC, you can only get there by using Alt+Tab or Vista’s Flip3D. You can also choose to check the box beside systray so a VLC icon appears in your system tray.
6) Finally, you really wouldn’t want your background to disappear after a couple of seconds so we’d have to loop it. To do so, just click on Playlist in the navigation menu, and a list of settings will be provided. Thanks to Matt for reminding me that I have forgotten to include this.
VLC works on many other operating systems.