My only suggestion is to look at what I have below...my video is on a panel and I see no latency at all, the video is crisp, clear and streaming perfectly.
Code:
ENTITY* video_in_panel;

function control_streaming_video_window(){
	my.pan += 270;
	my.x = 50;
	my.y = 1;
	my.z = -11;
	my.ambient = 25;
	my.shadow = on;
	
	while(1){
		//CHECK FOR CHANGES FOR THIS HTML WINDOW
		wait(1);
	}
}

function main(){
//Some code
video_in_panel = ent_create("streaming_video_holder.mdl",vector(0,0,0),control_streaming_video_window);
streaming_video_handle = media_loop("streaming_video.mpg",bmap_for_entity(video_in_panel,0),100);
//Some code
}




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