In an effort to make things as simple and consistant as possible, we want to minimize the controls to simply hitting GO on the lighting console to fire all projection cues.
What we figured out today was (like you mentioned) playing the video on an aux timeline, and having control cues in the main timeline to pause / resume the video. To fade it out, we used an additional aux timeline that fades in a black image over the video timeline, essentially "fading out" the video. It seems to be doing what we needed, but in a backwards way.
I do wish Watchout would handle cueing a little easier. It seems that something like a fadeout on cue should be much easier to accomplish without having to use multiple timelines or external devices. Maybe us in the theatre world are just used to equipment that operates by hitting GO... I would love a "Fade Out" control cue.
Thanks for your input.
Zach