Traditionally, Internet Service Providers (ISPs) have to interconnect with content providers to provide network services to customers. The current business model that connectivity and bandwidth become commodities has motivated ISPs to distribute content and other application-specific services directly to their customers. Hence, it is desirable for ISPs to economize existing infrastructure to support a variety of applications and services. We propose a dynamic mesh-based overlay peer-to-peer infrastructure (D-MORE) and illustrate its example usage case among other potentials. We describe several key techniques, namely capacity classification, localityawareness and incentive mechanisms for construction of the tiered infrastructure. Through extensive simulations, we show D-MORE scales well with an increasing number of hosts, in terms of control overhead and link stress, for supporting media distribution services. We propose further improvements to enhance the D-MORE performance, which br...