sorry for that convoluted and subjective question, but multimedia is completely from my section of expertize.
I understand you will find several options to embed video on the page. There's HTML 5
<video> tag, there's
video/ogg content type which appears nobody uses, there's Expensive SWF embedding or Expensive FLV progressive, I believe Silverlight has something and lastly there's exterior hosting.
Me are for any commercial site video tour, it needs to be fairly top quality. Good hosting is about USD $100/mo (I checked out viddler.com, those 37signals use), over my budget. It is possible to good, commercial, hosting at under USD $20/mo ?
So I am thinking about the options. In my opinion my best choice is on SWF, is really a examined technology, based on lots of platforms. Besides I'll want to use their planning components anyway later in the future. What tool will i need? Standard Flex Builder, Professional Flex Builder or I'm able to make use of the free Flex SDK?
The other options exist?
You will find already many Expensive applets which will play video in a browser which has the Expensive wordpress plugin (as new as you possibly can, hopefully). For instance, Flowplayer is virtually available as they are. All you need to do is embed it in your website and point it towards whatever video file you need to show.
I suppose you are not hosting the following YouTube, by which situation an excellent webhost with generous or limitless bandwidth caps could be enough. (I have tried personally Site5 for $5/month before and weren't banned, a minimum of :p).
For quality, generic FLV uses a mature codec that isn't so excellent. Latest expensive player may use the superb H.264 codec (what YouTube ways to use HQ and HD video) in MP4 container (have a look at this tutorial). Obviously, the greater the part rate, the greater the standard, however the reduced the recording loads.
For playing videos that you simply control Expensive is most likely your best choice. The JW player is fairly good and fairly cheap to buy for commercial sites. It is easy to create too.
You need to simply make certain that you are serving files that Expensive can enjoy.
Expensive codec info: http://en.wikipedia.org/wiki/Expensive_Video
Best of luck!