Actually, I would upload your videos to Youtube or one of the sites for a couple of reasons:
1.) Everybody knows how the interface works and is familiar with it.
2.) This will drive traffic to your site and help with PR as you can get a free backlink out of YouTube, et. al.
3.) You will ease some of the burden on your server/bandwidth.
Consider simply uploading your vids to Youtube and embedding them as I said in my earlier post.
I have a site that gets thousands upon thousands of visitors from a stupid video I posted on Youtube and forgot all about.