Regarding the use of projectors, there is essentially nothing in xlights for that (at least, that I'm aware of).
For sequencing, you might want to create a dummy-matrix (one that isn't actually mapped to live channels), and have your video "play" on this matrix. This would allow you to see what's happening on the video when you sequence your other models. For me, this really made my rendering-time a lot longer, so I had to do without.
As far as actually playing your sequence, I used FPP/Pi. I used the video output (HDMI or composite-out) of the Pi. FPP allows you to load a video media-type for playback (just like audio).
This, at least, is what I figured out, and made work. Maybe there are other (better) options.