Pop Out Video
Ideally I want the video file to overlay the rest of the site, which should dim into the background whilst the video is being played.
I have researched this on the web but the more information I read, the less it seems to make sense to me!
Any tips would be great!
I am unsure about the banners feature of Joomla as I don't use it myself.
However, if I was looking to achieve this I would most certainly be using Fancybox which can quite easily display any media you wish with the extra requirements you mentioned.