Use nodes to generate a texture of an image cut out with a checkerboard I'm new to Blender and running against a deadline!

How can I create dynamically with nodes a texture made up by a video with pixels cut out using a checkerboard pattern. When I say cut out I mean leaving pixels with transparency there and other pixels with RGB colors from the video.

Just RGB colors have to became checkerboard-cut, no the transparent background. The video is RGBA.

I cannot use too much subsurf and particles because my GPU is dead now :( , and the only combination of video texture over plane + subsurf + explode + particles that suits my needs depends on this node-generated texture that improves critically the performance. 

This is my goal:
Blender internal
One way is by using a node texture on top of the video texture to influence the alpha:

Note that the color input on the checker node has an alpha of 0 and the material has Mask alpha enabled.
Example .blend
Cycles
In cycles this can be done with a material setup like this: