I've seen an article describing how to use VLC as a live wallpaper for the desktop, however the options mentioned there only refer to Windows.
What would I need to do to achieve the same result?
VLC does support video as background. Simply run the cvlc command:
There are other helpful options to cvlc such as aspect ratio etc. You can find them using
If you still want icons on your desktop you may need to take a look at xwinwrap, but it requires a little digging. There is an option to set movies as background. I dont know how to do it with VLC but it has been done with mplayer.