I having been crunching on the avfoundation framework for a few days now. I am ale to successfully overlay and position CALayers and mash, export the final video with the exporter session.
I need to have a video with alpha transparency OVERLAY another video for the duration of the the video asset. I cannot get this to work AT ALL. Any help would rock!
Try this tutorial: http://www.sdkboy.com/?p=66
Looks like you need a bit of customization for your AVFoundation player, but it can be done.