For as long as I have been using Google Docs you have been able to play videos from within it. But, now, according to Google, “you can now insert your videos into Google Sites, embed them anywhere on the web, and caption them for your viewers.”
Google Sites has added “Google Docs Video” to it’s insert menu, to go along with Google Video and YouTube. From within Google Docs you will now be able to get an embed code, just as you can on a YouTube page. The code will work exactly the same embed code does from other video services. Finally, you can caption videos to make them more accessible for the hearing impaired. This has the added bonus of creating a transcript of your video, which will make it available from within search. According to the Google announcement you can “give it a try, choose Manage caption tracks from the Actions menu for your video, then click Upload caption track… Anyone who has edit access can upload a track.”
There is mention of a gradual roll-out, as these Google releases frequently have. So, it should be available for everyone right now. To check it out you can just visit the Google Docs site.