Forget having videos with reflection, having two videos playing with snaps means twice the load. You can just read the frame from the same video and flip it vertically and display it below. The hard part is making it dissapear (alpha fade) as the reflection dissappears. The only way to do this would be to use Direct3D and have the video mapped to a quad as a texture. Then you could even quite easily have the reflection on a angle like it's reflecting on a surface. This is quite possible to do since the hardware takes care of most of it, the load is converting each frame to a texture. But I have written Direct3D applications that can do that, so it's possible.
As for images with reflection, they are alot easier, bust most FE's use Direct Draw (GameEx, Mala, Atomic, MameWah etc.) which means there is no alpha channel to have images fade out to the background. Even batch converting the snaps would mean they will not fade out in a FE because they don't support alpha channel.
This is the current situation, but FE's will be moving to Direct3D/XNA or Vista's new WPF which makes Direct3D available in a simple to use manner.