Insert Uploaded Video

Ok, please forgive me if this is something of a newbie question. I seem to have “mastered” the process of embedding video files from external websites (such as YouTube) to my blog. That seems to be a fairly straightforward process of cutting and pasting embed code.

The challenge that I’m facing at the moment, however, is that I would like to embed a video file that is NOT being hosted by an external website. The file that I have is too large for YouTube, so I had planned to simply upload it to my web server and then link to it. And, I think that I can do that if all that I want to do is have people download the file. However, I was hoping to find a way to actually have the video appear and be played/streamed through my blog post (pretty-much the same thing that happens when I embed a YouTube video). Is that possible? Or do I need to have special video streaming software installed on my web server?

If this is NOT possible, does anyone know of a service that would allow me to upload a LONG (approx. 2-hour) video of about 800 mb that I could then embed? Thanks for your help.