I would to create a Flash control that takes a video capture card feed and makes it a layer in Flash (similarly to the way Youtube uses your webcam to record through Flash). I would like for it to play full screen at a resolution 16:9 or 4:3. I would also like to insert a button called PIP (picture in picture) that when its pressed, it smoothly shrinks the video capture card layer to a quarter of the screen (top left) and shows placeholder content underneath the available space (Jpeg, swf, etc).
If you have any additional questions, I'll be glad to answer them. Good luck!