I've not heard of it until you posted it. It looks neat and I understand the concept. However, I am confused about the video hosting. It can be stored on your hard drive but served up from the closest server?
I am mainly confused as to whether they host it or I host it or whether it can be both.
It's only the player itself, not a hosting site. I tried several video streaming players, and found easyflv to be the easiest to setup and configure. Flowplayer and JW don't have GUI's.
Flowplayer is partnered with encoding.com for file conversion to a streaming format and a CDN (content delivery network) called HDDN that costs $9.90/month (more if you want to get their branding off and put yours on).
The Flowplayer code is comparable to JW Player (which does have a wizard setup if you poke around on their site). The pricing isn't out of line with other services although I suspect the HDDN cost goes up based on quantity of video streamed and possibly amount of file storage used.