I believe several users have done streaming video using embedded players. HTML isn't my area of expertise so I'm afraid I can't offer much advice, but it should be possible using HTML5. You might need to use a different format though; I'm not sure how good the support for WMV is on Android.
I have done this with a swf flash video and it works good. It sucks battery although, and flash is dead now, so not a good way to go now,
There is a problem although if you get it to work with HTML, andromo reloads a page with a new grid size when you turn the phone, so every time you turn the device it will stop and reload every time it rotates,
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