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We have been looking into this ourselves and we believe flash hosted galleries are the way ahead. The problem as you have said is getting MGP/TGP sites to accept them and with business down for everyone folk are less inclined to take chances.
I think a minimum clip of 2 minutes would be about right. Also.. the res of the clip should be close to the original. The tube sites at the moment have very poor quality and small res vids so we could at least have an advantage in that dept.
At the moment we are converting all of our vids on our paysite to flash but still giving them the option to download the wmvs.
It would be interesting to hear the opinion of both affiliates and MGP owners on this matter.
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