The fact of the matter is that this method will not get DreamScene working on your machine, but the effect will be similar to that delivered by the original. It may require some amount of effort on your behalf, but go along with me on this one. It will be worth it.
First off, you will need the latest edition of VLC Player[Freeware]. After downloading and installing VLC Player make your way to Settings > Preferences > Video > Output Modules > Direct X. In order to see all the settings available, you will have to check the Advanced options box in the bottom right corner. Enable Wallpaper Mode is such an advanced option; it is disabled by default, but you can just enable it by checking the box next to it.
Now it's time to simulate the behavior of DreamScene. In this sense, navigate to Settings > Preferences > Interface > Main Interfaces > wxWidgets and simply uncheck the box next to the Taskbar option. This will remove VLC Player from the Windows Taskbar while the application is running, and it will be running extensively. And if you select Settings > Preferences you will also be able to loop a single video fragment. Enjoy!