You can create a playlist like this:
For more on how to do this, including auto-hiding content and alternate fullscreen image content for touchscreen devices, take a look at this example.
Playlist clips courtesy of Beachfront B-Roll
For best results, I recommend using Vimeo. Sign up for Vimeo Pro, then use their direct mp4 link to serve the video. Vimeo not only has solid bandwidth for delivering video, they do great compression. If you start with a high def source at a bitrate of 10mbps or more, it does such a nice job that you can probably get away with using the standard def source as your background video.