Using popVideo files
Everything you see in this demo (Including the background!) was made in iClone 4 Pro with popVideo files, two avatars, and one terrain!
Just layer the popVideo files, one on top of another, position them where you want them, and Voila! you have a complete Scene Set.
Static popVideo files (spaceships and the like) can be made to give the illusion of movement
by placing and scaling them at different points on the timeline.
Or, you can make a critter walk or run across the screen by using the same placement/scale technique.