The key for your logo to show is to in function createLogo to use setDepth right after you add it.

$item=$movie->add($button);
$item->setDepth(50);

then you can play with the x and y cordinates to place it where you want. I would imagine a transparent png would work better, and I will play with that to see. Just want to post an update on my progress. The neat thing about adding it as a button makes the movie play when you click the logo!