use the activex API from wiki.videolan.org/Documentation:Play_HowTo/Advanced_Use_of_VLC#Building_HTML_pages_for_Mozilla.2FFirefox.2FInternet_Explorer.2FSafari_.28VLC_version_0.8.6_and_above.29
hi ! i think you can tweak the js for the crossframe problem. anyway you should better use ajax instead of iframes ;) (jquery rocks at this) for the http/avi seek problem, the problem is internal to vlc, known, and is not yet resolved. maybe in 1.0 i cant say beacause this is very low level problems...