Hello,
,
There is options, as above, but, imho, the best, and most flexible, would be greenscreening. (chromokeying), as mentioned.
If wax 2 supports chromokeying, and does it efficiently, then thats really cool, coz its free.
I hav Sony Movie studio, ($70 from
www.newegg.com), which does an excellent job, but i still use an older version of that, called Sonic foundry Vegas video 4. (Solid, excellent video editing software).
Hav used Terranin8or for animated backgrounds. Works well for that, but if you want to have something like, a t.v. in the corner of a room showing a movie, it may not be that simple, as the images are 'pre-placed' into your scene, meaning rearranging all the positions, and possibly resizing all the images as well.
Terranim8or is an excellent addition to anim8or, but for the type of thing you're talking about, you'll get a lot more freedom with chromokeying.