1) Hosting videos
- choose a platform like Vimeo / YouTube etc. They have restrictions though. Perhaps $.
- host your own. Loads of videos eat up resources. Your server will become overloaded very quickly. You may need a special media streaming server. $$$$ (see media hosting)
- embeddable videos from other sites may come with own players
- for local files, see FlowPlayer, but many alternatives out there*.
* Most local players can only work with flv files. There are literally hundreds of free video transcoders out there. Some sites will also upload and convert videos for you.