It set me down the right track, or made me realise I was on the wrong one... and you're right: no need to dither the overlays.
Spent a good ten hours or so fiddling with ffmpeg, mplayer (+ smplayer), vlc so far in an attempt to find a client that has the right mix of low overhead, formats offered, decent thru rate, blah blah blah, still struggling to find one that "does the business" fullscreen.
might be more effective to rework Geekmaster stuff to serve as a shunt, sans dithering and look to add the - long missing - audio channel. Only more experimentation will tell.
Appreciate your hookup, big steps forward.
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