Finally! the scurvy media video-to-texture library finally works in xna 2.0. I checked in the changes that show off the new features like the video processor that lets you choose between streaming and in-memory playback mode (in the Branches folder).
thanks for all the feedback that I've gotten so far, and for everyone's patience :-) I do this on my spare time, so it's pretty satisfying when I finally get somewhere.
Now that I finally got it to work, I still need to clean up the code a little bit and merge the branch back into mainline. Once I do that, I'll put together a binary release.