Maybe you could try ViPlay its a movie player that has an option for not displaying borders, and its resizable, you can even hide the main/control window so you'll only have the video window with no borders at all. You also can make it remember the settings, so it will always open on your matchbox size waiting space...

BTW it's freeware, no spywares, saves settings to an ini on it's folder, small sized and very very good player.

I hope it helps.

Regards,
Mguel