I think this might be the prob I need to solve too. I say 'think' as I'm totally new to video content. After crashing my server twice with a fairly small numbers viewing a 200mb FLV video at 2500kbps, I discovered the limits of self-hosting

My providers put in nginx and I moved the 2 high traffic videos off site linking as unlisted or public content on other sites. The latter is a 'get out the shit measure'.
My operation is very niche with very few users, so my needs will be modest. Not sure I can post links yet but Googling my name will get you there fast, so you can get an idea of my site.
What suggestions would you have for my higher demand videos? How can I reduce load? Is there something better than FLV? Any advice on compile settings for best balance between quality/load? What good solutions are there for moving some videos off site (a couple of dozen) or all (around 100 with capacity to grow to a few hundred)? If there are any useful links that already answer these questions, it would be appreciated.