Pics and videos on html have also shown good conversions on our end - the old reasons for not having content on html (cheating) is not a problem anymore, if TGPs trust their submitters. Another plus I found with the videos on html is that the gallery maker have much more control on how the video will be played... Many surfers have videos shown in the browser, which can cause playback problems (ex. that strange windows media playback feature in IE, which play videos in the same small size - also exotic players which hijack the playback for different video formats etc.).
If the video is embedded in the html, then you can control size etc. and if you are too affraid that surfers will not be able to watch the video in the embedded player, then make a link below the embedded player, which goes direct to the video file.
Another plus is that you can have the embedded video in a different format - ex. wmv for the embedded player, and mpeg for the download link - that way you can save alot of bandwidth since wmv in same quality as mpeg is about 30% smaller in file size.
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"Chaos is the law of nature, order is the dream of man."
~Henry B. Adams (Historian) 1838-1918
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