These types of sites are fairly commonplace and it's not that hard to replicate.
How?
Get cheap bulk hosting, get a script from scriptlance, get about 5 outsourced workers scouring the net for unwatermarked clips, get 1 guy to batch process the vids and convert them to Flash video format and upload to your server, get 3 to 5 writers to write descriptions or funky stories, get 5 to 10 people to do link building, forum promotions, link dump submissions, directory submissions, one way link trades (use the ABC method at
http://justtraffic.blogspot.com/2006...imization.html ), partner with other funny vid sites, viralize your content, press release submissions, article submissions (think SHOCK VALUE!!!), blog promo, etc.
Set aside some cash for Adbrite interstitial placement, buy some cheap $1CPM with shocking banners at some high traffic areas, and some site contests
If you don't have much cash, scale down the list above then ramp it up once you have revenue. There's TONS of these types of sites on the Net and people can't seem to get enough of it--seems like there's enough space for people who are driven enough or have enough starting capital to do it.