Over at OpenVlog I have just finished implementing an automatic Flash conversion for video that is sent in. It was quite a task from getting FFMPEG running on Dreamhost with LAME and AMR support (you need to change your LD_LIBRARY_PATH environment variable), understanding Ruby enough to get FLVTool2 installed and working (another environment variable issue) and building a fancy Flash video player..
I think it was worthwhile in the end..
A Sample: I love NY (click on the Flash Version link).
Thanks to Cat and the FreeFormed.org crew for the impetus.