We actually use Kaltura with Captivate all the time! Don't get fooled by their broken video - works quite well.
Kaltura is a video hosting service and we make quite a few videos (100+ per year) that we embed using the Web object. The one drawback for me is that we only get embed codes and it would b more helpful to me that we get addresses. Still works well though.
Make sure you size the Web object just slightly larger than the video.