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Both, with one file. Use the html5 <video> tag to embed your mpeg4, and have a direct link to the file. According to one source, IE9+,Chrome 4+, Safari 3.2+ and Android 2.1+ will show the embedded mp4. All others click the link.
I expect that in time the other browsers will support mpeg4 via <video>. You can also add Flash to play the mpeg4 when the browser can't play it directly since Flash can play mpeg4.
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