In the Windows Vista Ultimate Extras Pack, apart from many other nice additions was a cool looking utility called DreamScene. What this tool did was to let a user choose a video as desktop background. Among the many features that Microsoft pulled the plug on with Windows 7, DreamScene also made it to the list of programs to be left out.
DreamScene Activator is a free tool which enables this feature for Windows 7 with just one click. The program works with both 32- and 64-bit versions of Windows 7 OS.
Simply download and run this tool as an administrator. Click Enable DreamScene, the explorer will restart and next thing you know, video wallpapers are on.
Update: Link removed because according to the commenters this shouldn’t be installed.