It may be based on one of the open source flash players. It should work well on low-bandwidth, using bufferization and should be able to switch from one source to another (buffered in background) immediately. Player will take directions from external server (protocol will be provided). Commands are: insert some other stream or graphics overlay at specific point in time.
Source code should be clean and commented. We will work using small milestones to make sure that you match our expectations and can deliver high quality software.
In your bid please specify your milestones schema.