Video in game while playing?

Is there any way to play video in game while the user is playing? For example, I want a user to talk to the user. So I want a video to come up and talk to him like that.

Yup - manipulate this.

How can you make the video actually follow the users movement? Like a Hud display?

I was thinking about putting on SM and attaching to camera, 1st person would work much better

Example in 3rd person