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Flowplayer is available in a free and non-free version. The difference between the two is branding. You can't add your own logo onto the free version, and theirs appears for the first second during normal play. They don't restrict your using the free version on a commercial site.
You can use their content plugin for generic ads, or they have several plugins for specific ad rotators. Check the Plugins page on their site (flowplayer dot org).
Be aware: Flowplayer takes some JavaScript savvy to get working correctly.
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