G has very kindly installed some nifty plugins for WP2 for me, and this is one of them, VideoPop. It now allows me to do this:

Test Video

Please note that it will bring up a pop-up window, and a blank canvas. You should let it load awhile (which could take a few minutes if the video is more than 5MB in size), and a playbar should then appear, on which you should press Play.

Your feedback would be appreciated. Please note that this may have teething problems at first, but it will improve as time goes by.