I am not sure if something similar to this has already been posted, but I decided to post my way of adding video textures to games. It is the quickest and simplest way I have found so far.
Note: Video textures do NOT play sound, but it can be added later by extracting the sound from the video and playing it with a sound actuator.
Hope this helps those who need it.
Here is the file:
EDIT: The new version now uses the tutorialsforblender3D script.