Microsoft has an open source framework called the Silverlight Media Framework, or SMF for short. It is a framework for video. This allows you to create your own media player. Cool stuff.
SMF makes use of the Smooth Streaming Player Development Kit. This additional kit is not open source. You create your own Silverlight project. Then you use SMF and this kit within it.
The technique is to inherit from the SMF player. Then you extend the capabilities as you see fit. Settings are downloaded from a server via an XML file. Check it out.
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