Regarding the installation : everything in the same folder, which should be your VPinMame.
Regarding the video format, all the one supported by Windows Media Foundation (wmv, avi, mp4,...) + Gif are supported by FlexDMD. Note that wmv, mp4, avi are the container format. Then you have the codec format for audio and video (H264,...). To choose the most compatible, solution, I would use GIF like most original table authors do; this format is largely sufficient for something small like a DMD ; it is what Champion's league use and it has complex videos. If you really need another format, then you are likely doing something more complex and would benefit from a pinup solutionwhich is fully designed around playing videos, instead of a Ultra/FlexDMD.
Gif would be a pain kinda, ton of frames, and then have to sync the audio to it
wmv with H264 and ac3 seems to work ok, mp4 it barfed on, but i am suspecting a part of that is vpx beta, just being beta




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