We've written an MOV material that plays a PNG compressed MOV file with alpha on a poly. It's pretty cool though a little memory intensive. Not a problem for this application.
Here's the problem/question:
Problem: I'm seeing alpha flutter between two polygons that overlap each other in the game camera. The distance between them is way more than it needs to be to avoid Z-Buffer artifacts so nope, it's not that.
Question: How does Unity decide which pixels of an alpha texture to display? Is it by object center or object bounding volume?
Here's what we're trying for: http://www.lindsaydigital.com/clients/MBAQ/webPlayer/test_006.html