Is it possible to make a seamless loop on an embedded video?

Hello!
I have a 10-second embedded video (of, say, water ripples) that I would like to loop continuously without displaying an obvious break/jump from the end frame to the first frame.The video itself does not end at the beginning, so it cannot simply be looped. The only way I can think of to simulate a seamless loop it to use the alpha/fade tween somehow, but I have no clue where to begin, or if this is even possible in flash. I just have these two theories:

THEORY #1: If a movie clip can be reversed, then I can append a reversed copy of the clip on the end, which would create an actual seamless loop.

THEORY#2: If I can cut the first 2 seconds of the clip, and paste it over the last 2 seconds of the clip, then fade in on the first one, this would create a virtual seamless loop.

Of course, I have no idea if these options are possible in Flash (I have CS3)
Many thanks in advance for any assistance,

Davide