I uploaded three patches to Codeplex for Video.Show():

1. Creating a dual server configuration to offload video processing
2. Running the Video Processing Service as an NT Service
3. Enabling anonymous uploading and commenting

All three of these patches were used for the implementation of Video.Show() up at http://pulse.sxsw.com. You can download them here: http://www.codeplex.com/videoshow/SourceControl/PatchList.aspx.

One other lesson learned with Video.Show(): don't forget to add the various codecs that you want to support when you configure the encoding server.  At first, we were perplexed why .mp4 files kept failing and then realized we didn't have QuickTime installed on the box.