The package contains video solutions framework, including transcoder and administration interface utilities, written in PHP. The code was developed by Automattic Inc, and powers wordpress.com video solutions.
It supports multiple formats including HD. We hereby make it open source project so that you can reuse it, build upon it, and share with the community.

The solution is a WPMU plugin. However it can not be used as "out-of-the-box" type because it also depends on your file serving infrastructure, and your URL schemes. Customize your pieces, then you have a full-fledged video solution. Or you can just reuse the individual components such as video player or transcoder.