[UPHPU] hosting short video clips

[MilesTogoe]

if I want to include a few short (say 3 min) video clips on our b-to-b 
website (linode - sinatra) what do people suggest about hosting the 
video clips - should they just be in a folder on the website ?  or 
should they be hosted outside on one of the video sites ?   If hosted on 
our own server it would just be in the form of a video file (maybe Ogg 
or Flash) that would require a client player (I'd like to do it with 
html 5 but doubt that many browsers out there are capable of that yet.  
(though we're running Sinatra, I know a lot of you php group folks are 
well versed in video).