I recently came across a great website that allows you to easily embed Google Videos within your website.
DownloadGoogleVideos.com utilizes the Google Video search engine to let you find the video you want, and gives you the code you need to display the same video. This website also allows you to post the video on your website via a link that fires up a popup window.
DownloadGoogleVideos.com, search for a video and grab the code below the video player. Below is what the actual code looks like. I recommend adding a div tag and aligning the video in the center or however you wish to align it.
UPDATE: The site has been since closed. Google now offers the code to embed videos on your site directly.