Unanswered Questions. The current HTML5 draft specification does not specify which video formats browsers should support. Select your country from the drop-down menu below the country title. YouTube Movie Maker does away with that because it supports all popular video and audio formats.
You can embed videos (not upload directly)
It sounds like you want to build your own mini-YouTube, so just consider the scale of that challenge as you move forward. As a result, the major web browsers have diverged, each one supporting a different format. Thanks in advance! You can use HandBrake or VidCoder for this task.