I don't karaoke, so I was thinking the videos had to be timed/played with the music. If I understand you correctly, you're saying the video holds the music, words, and all the rest.
If that's the case, that media engine seems to do that as well. I don't know about the controls, though, since I was only looking to play music with it.
If it was a DJ guy who had something set up like you wanted, I'd say check Google for karaoke DJ software.