Yes, it's like any Flash player that parses XML.  Most players I've seen use the thumbnails for its playlist.  

You may not find a player that does what yobt does.  The player on yobt can be decompiled if you need look at exact code examples.

http://www.yobt.tv/player.swf

http://www.yobt.tv/29697/pl_screencast.xml

The FLV file is encoded in that XML file.