OK, a little better. I used VLC to convert it to mp4 but, now it's no longer transparent as it should be being an overlay. Is there something else I should do when converting it?
I don't know, I've never tried anything like what you're doing.
You will need to convert it using a codec that supports Alpha.
Did you find a solution for this yet mate?
1. Download & Install Premiere Pro CS6 from creative cloud.
2. Open It.
3. Add the viddyoze clip to your timeline and let Premiere Pro conform the timeline to your clip.
4. Open The Export Dialogue
5. Choose Format: Quicktime
6. Choose Video Codec: PNG
7. Set Your Output Dimensions to "1920x1080"
8. Set Your frame rate to whatever the original file was. (Most likely 24p)
9. Set Field Order to Progressive
10. Check the box for "Render at Maximum Depth"
11. Set Depth to "32 Bit"
12. Check the box for "Use Maximum Render Quality"
13. Name Your File.
14. Click Export