how to upload video to blog?

Hi ya'll!

I am trying to upload a video to my blog and having difficulties.

We shot a video using a Flip video camera. We uploaded to the media library but it only shows in the page as a link and not as a "screen". We want it to be embedded in the post, I guess? Sorry, I don't know the terminology.

Also, when we play it on the site through the link, it's not synced up properly. Does it need to be encoded? How do I do that? It was originally a .avi but then we had to edit it and now it's a .mov .

I don't want to upload to YouTube. I have Adobe Flash and the Adobe movie encoder. Am I supposed to encode the .mov and then upload to media library for it to work correctly?

I hope this is clear what I am asking but I am not sure if I am using the right terminology. I've done searches about this question but every result wants to sell me some software and I already have Adobe CS4 so I don't want to buy anything else. I just want to know how to do this.

Thanks for your help,

Eunice