Hi Dave,
About the bars, it's because when you use this tool (web area) It shows you all the page as you can see in the browser. At less it works like that for me. Maybe in the case of the Sky News, the interface of the page is not too big. I've used RSS in a RSS area, but this only displays text.
And in respect of the format, take care with this, because there is a issue with the formats. I recomend you to use *.mp4, it's light and it works properly. The problem with the format is that sometimes you have the preview in the server, but it doesn't work in the client. That happens because the Client needs to have installed its own codecs!