To take a closer look at the demo and download this library still in its early development stage, please go here and have a look around. For now, basic functionality is almost complete, Moovie offering support for subtitles and playlists already, CSS-powered styling, play/pause/stop controls, control and progress bars like the ones YouTube has, and then some!
Released under the terms of the MIT License, Moovie requires MooTools and works with most major browsers without any special problems, but the demo currently has some issues in Google Chrome and Google Chrome-based browsers (Flock 3 beta, anyone?).
P.S. I guess you figured out this already considering the license type, but let me point it out clearly, just for the record: Moovie is completely free!