Revver.com has already proven it can be done and done well. I look forward to new video ad innovation by Google. Why? Becuase video ads will help keep video on the internet FREE.
"GoogleRumors reports seeing a video AdSense ad for Magazines.com on entertainment blog "The Superficial," which was running the ad via Flash Video. The ad spotted was said to use the normal AdSense inclusion code for text/image ads."