Great idea!
This has been an area we wanted to include on the TON but could not handle the file storage. With the development of large file upload sites on the net, it's alot easier to find places to upload files for free, then link over to them. Of course, you have to accept some advertising on the displayed pages, but you get free large file storage space and loads of free bandwidth.
Below are a couple of sites I know of....please list more that YOU know allow free video file uploads...
Be warned!....most of these sites also have adult videos and are probably NOT suitable for kids.
http://www.putfile.com/http://www.filecabi.net/