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You raise a number of issues. Basically the whole .folio/DPS/tablet thing is in development and it's still early days. No doubt in due course there will be low-cost solutions for individual and small publishers There is a forum here devoted to DPS: http://forums.adobe.com/community/dps
Regarding inserting video into PDFs, there's a good free tutorial from Peachpit : http://www.peachpit.com/articles/article.aspx?p=1719319
Lynda.com have a useful tutorial on using the iPad, which includes creating presentations with Keynote and with third-party apps: http://www.lynda.com/iPad-tutorials/tips-and-tricks/68383-2.html
Also regarding the use of video, you (and others) may find this new post from "InDesign Secrets" helpful with video formats for digital publishing: http://indesignsecrets.com/picking-the-best-video-format-for-digital-publishing.php
Thanks Derek. So to be clear, there is no possible way to work with Folio Builder without the subscription? Is that correct? If so, I must say the Adobe marketing is pretty dodgy then... and frankly it feels like CS5.5 is in BETA. It was just a cunning way to make money out of absolutely nothing then. So the only people who can even learn about the 'next generation' of digital publishing are those designers who work at big agencies with big clients... shame on Adobe really. No wonder they don't answer support calls! I am dissapointed.
It seems by this that you CAN preview the folios without subscription! This is doing my head in. What is it - Yes or No? ;-)
EDIT: Will go to the DPS forum as suggested. Sorry.