Yeah, it'd be just like the Youtube player example. I am pretty sure the Youtube player uses FLV, infact I am positive it does.

This concept would make it so anyone could embed your videos on their website, BUT it still doesn't get past the whole .flv issue.

If you google for "free YoutTube video player" you should find a "Free" clone of the player already built. Might save you a ton-o-time.

Hope this helps,

Scott