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I wouldn't make my site based on the 56k user unless that is your target audience, and if it is then kill the flv files. Not too many 56k users want to sit for 5 minutes to see a crappy 30 second video (quality not content).
You should re-encode those videos to play at a better rate for broadband users, and maybe add extra buttons for dial-up users. This way you have 2 flv's of the same movie, encoded at different rates. If someone clicks on the 56k version, they get the choppy low res junk file. Buffer it longer to make it play smoother. If they click on the broadband video link they get the nice, smooth, clean and clear video that doesn't distract from the design.
/my 2 cents
Nickels - what you're saying makes sense. What I'm going to do is to make a parallel site in which all videos are the lower quality, and at the home page - where there is no video yet - I'll give the option with link to go to the "dial-up site", with a suitable explanation/warning that dial-up means lower quality. One question - where/how do I increase the buffer?
Are you using Flash 8? If so click on the FLVPlayback component and then open the Component Inspector Window (Top menubar "Window"->"Component Inspector"). You can now change the movie attributes like buffer time, auto play, skin, volume...).
This can also be accomplished using actionscript. Give the FLV component inspector an instance name like vid and then use the following code on the frame (not attached to the flv component) that the FLV component is on:
vid.bufferTime = 3 //buffer 3 seconds
That should do it.