Ive been playing around with inserting images with transparency in the caption field to overly the video background on my slide.  It works great with a PNG however, when I insert an animated gif, the quality of the gif goes way down and even the animation timing is off.  Any idea's?

Second, this sounds crazy but would a video with transparency work(.mov or other)?

The overall purpose of this is to have the ability to animate different text/logos in any font and timing without putting it in the background video which could cause clipping upon resizing.

I was wondering if you could tell me -why- the quality of the gif degrades in the slide?  I'm quite curious to understand.

hey Michael,

I actually made this work after looking for an answer on here. 

Basically all I did was upload the Gif via ftp to make sure it wasn't compressed via wordpress.

Then went into style.css and changed the .active-texture (or whatever it is) to have the gif as a background image.

Then set the background opacity to 0.1 

and it works perfectly. 

now I have a perfect animated GIF overlay on the nectar slider!