I don't know anything about the games factory, but I don't see why you couldn't use daphne.
As long as you can keep a running timer (in seconds), you can use that to seek to any frame you want within however many video streams you want. You would just have to build a framefile with each stream at a given offset, and add the amount of the offset for each seek.
For instance, let's say you have 6 night-trap-ish rooms with video that should be playing in each room at the same time. First, structure your framefile like this:
1000 stream1.m2v
2000 stream2.m2v
3000 stream3.m2v
4000 stream4.m2v
5000 stream5.m2v
6000 stream6.m2v
with each stream corresponding to a different room.
then let's say that exactly 2 seconds have passed when the player enters one of these night-trap-ish rooms. If the streams are at 24 fps, then 2 seconds times 24 frames-per-second = 48 total frames passed.
So, if the player entered room 4 (which corresponds to stream4.m2v) after 2 seconds you would seek to frame 4048. If 2 seconds later he enters room 5, seek to frame 5096.
Voila, instant (simulated) multiple streaming technology, courtesy of Matt_O
