Hi,
I know somebody had asked this question before...but the issue was not resolved.  I have the same problem.

1.  Downloaded the plugin
2.  Uploaded to Joomla 1.5
3.  Published it in a module position 1 (user1)
4.  created video folder in /stories/videos

In the module itself, there's a WYSIWYG editor, put the  {flv}filename{/flv} there... see the text {flv}filename{/flv}, but no video

Created an article & placed thin{flv}filename{/flv} in content...published to frontpage in user1 position...only see the same thing {flv}filename{/flv}

What am I doing wrong?  Please advise...

Thank you & God bless

Tried it w/ wmv file...same error, just show {wmv}test1{/wmv}  but no video...