This shouldn't be a tough question. Does anyone have an answer?
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Video in ePubs is a bit of a mess.
ADE 1.7 only supports video embedded using Flash. Note that ADE 1.8 (currently in Beta) does not support video at all - and the indication from Adobe are that if they do support video that will do it using the HTML5 'video' tag rather than flash embedding (which is the standard going forward as part of the EPUB3 spec)
As you may have already figured out the 'video' tag will work on some devices ( iPads and the Nook Color/Tablet), but not in any of the Mac/PC programs (ADE, Nook, etc..) yet.
Thanks to everyone who helped. It seems that as much as I hate to admit it the iPad is way ahead of anything on a PC. I was looking at publishing ePub textbooks but without videos why? I think that unless the creators of reading software quickly catch up Apple will control another content area. I understand that Adobe is primarily concerned with content creators, but I think if Apple wins, Adobe will lose.