The Torrent-Network has not been invented for sharing illegal content, but many people use it for this.
There are still many legal things shared on the network, especially big files that would cause a lot of
server traffic like Linux Distributions.
u could use frames. so for example u create a frame which is the playlist and another frame where the .mpeg plays.
u just have to target the links to the videos in your playlist to the other frame.
the code to play the videos directly when loaded (no control panel):
<object classid="clsid:22D6F312-B0F6-11D0-94AB-0080C74C7E95">
<param name="type" value="video/x-ms-mpg">
<param name="filename" value="video.mpg">
<param name="autostart" value="1">
<param name="showcontrols" value="0">
<param name="showdisplay" value="0">
<param name="showstatusBar" value="0">
<param name="autosize" value="1">
</object>