Thanks for the information, patches are welcome for anything wrong with VC8 demos. I have not really touched this plugin in some time, and only quickly put up some VC8 files. You would likely have good luck importing the VC7 project files

As for a simple app, yes, it can be done. But, due to my lack of time on this, I setup a complete demo
1 load movie material - If done in material file, it takes a really short amount of code - all you would have to do, is start it off paused, and pass in a sound wrapper class you are using. Then start playback.Else, just look at the Movie logic class, and ignore the main cpp file.. As that mostly setup's CEGUi & Ogre, and has all the hooks for Gui event handling.
2 set to loop, or make only one play - I never implemented looping. I did, however, implement some rudimentary seeking. However, I suggest, you just listen for the end event, then, destroy the movie, and recreate it if you need looping.
3 set that material to rectangle - You can apply the material to anything (quad, billboard, particle, entity, etc). It is actually simpler then trying to get it on a Cegui widget.
4 at the end, release movie material - This is something you have to listen for (the theora message events). Then you can destroy it.