YES PLEASE!
I love that feature of the ATI MMC (the file player and the TV app). It lets you turn the video window into a selectively transparent, click-through-able overlay on the screen. Basically the video just plays over top of whatever else you are doing, thus staying completely out of the way. If VLC could do this, it would be perfect!
For the most part, you just need to set
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(WS_EX_TRANSPARENT | WS_EX_TOPMOST | WS_EX_TOOLWINDOW | WS_EX_LAYERED & ~WS_CAPTION)
Thanks.