Hi,
You can import a .mov file directly into flash and produce an .swf file with the movie embedded. The .swf file can be put in any HTML page or even be called directly. I am not certain of the compression settings for video, but for audio, Flash is very good at reducing file size so I assume Flash applies the same compression techniques to video also. As to what the total file size should be for it to progressivly download correctly will take some trial and error testing with different browsers and connection settings.
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