http://www.youtube.com/watch?v=FS20pG0cw5I
That example isn't strictly FMV, but I think i is streaming (looping) video, from a cartridge in that case.
What's done appears to be making the streaming BG screen bigger than the viewing area (whatever the window size is), then scrolling to further edges of the streaming BG image to give the illusion of an actual 3D environment.
On the Sega CD the problem would be that the viewing area is already limited in most cases, so either the framerate would drop and larger frames would be used, or the viewing area would shrink even more. Not so much of a limit on some other platforms though (like 3DO).
That would have been a cool effect to use in Novastorm, or Siplheed for that matter.


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