Yes, that's right. The Domino server can't stream media files natively. You need to install the HotMedia Connects addin to serve up the files. To get around this, create a directory off your dominohtml directory to store the RM files (the media file itself). Then create a RAM file whose content is a single line with the URL to the RM file. This RAM file can reside in the directory, or in a document. When the RAM file is accessed through the web, it passes the URL to the RM file to RealPlayer which then downloads and plays the file. NOTE: this is not a streaming solution. Use HotMedia to provide that capability or set up a RealServer and point to the files there.
More information can be found at: http://www.realnetworks.com/getstarted/index.html
There is also a technote in the Lotus Notes Knowledgebase - Technote 171637 that provides another solution. The Knowledgebase can be accessed over the web at: http://www.lotus.com/home.nsf/welcome/support (put "realmedia" in the keywords textbox, make sure 'Lotus Notes Knowledgebase' is checked and click GO).
This was first published in April 2001