Just joined and saw this post. Instead of using tons of pictures, if you are proficient at any type of programming, you can make a custom DLL which can be called by Ruby. The DLL would then open a windowed DirectX screen the same position and size as your game window. My preference would be to create a *child* window of the parent window "RPG XP" with a rendering surface, and load an .AVI file using the windows API.
You need the handle of the RPG XP game window, which can be easily found with the windows API by GetmoduleHandle, or FindWindowA calls. You can trigger the playing of the AVI file by using Ruby to call PostMessage using HWND_Broadcast flag, which your DLL window would trap in its callback, and play the file.
If you have no idea what I just said, then go with the pictures, otherwise this would make a somewhat easy way to play any movie at any time in your game.