This article is from the Amiga CD32 FAQ, by Stuart Tomlinson with numerous contributions by others.
A: If you plug in the FMV cartridge, you can play Video CDs in almost the same way as you play music CDs. It's really a 24 bit display card that can be genlocked with normal CD32 graphics, so you can superimpose your own images over it (this is a feature of Video Creator, apparently).
 
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