CoffeeDog:
I see. I wish somehow we can have it, the preview of the 1st frame. It's much better for we can have a list of video with preview. But it's some extra work anyhow.
That will require video transcoding for CS. When we decided to do it just like how youtube does video we had to go all the way with flv encoding. So now we've 3 types of thumbnails - for video player, for gallery lists and for control panel. Also we found it very useful to allow user to select any frame as a thumbnail. In post editor you can play movie in player, then at any time you press "preview thumbnails" button and then you get 4 thumbnails to select (with 0.25 sec step between frame).
http://www.upupo-soft.com/photos/screenshots/images/259/original.aspx
You can actually try it on our web site (www.upupo-soft.com). Though our solution doesn't support CS 2008 at the moment (we're working on it)