You want the AVS as the background of the playlist or album art ? you may be able to do that on the playlist using a custom overlay color for AVS, then setting it to be on the desktop background then edit the playlist to use the same custom background color -- the overlay should take care of the rest. I have never tried it but chances are it would work. The problem is that you would see only a section of the AVS (Where the color matches) and any other section of the skin with the same color would also show the sections of AVS.Transparency is definitely cleaner.
Thanks for the suggestion Guino. I missed this reply.
I decided to go with small avs window at 99% and overlay it with a button. Poke the little visualization it goes full screen (with a banner across the top). Poke the big screen returns to audio player skin.