Well since everyone seems to be "screaming" for this ... :D
I thought I would just make a quick post to point to a MPEG player that supports exactly what I was looking for.
VLC Media Player (from the VideoLan folks) supports MPEG files being recorded, playing until it runs out of file.
www.videolan.org/vlc/
Of course I would prefer if BSPlayer supported this, as BSPlayer is an all around full featured player. VLC is a little rough on the edges and lite on features.
(PS) Interestingly, they have a BSplayer skin for VLC to make it look like, but not work like BSplayer. What do they say about immitation ...