TechCrunch reports rumours re: Google implementing video ads into Adsense:

http://www.techcrunch.com/2006/05/23/google-ppc-video-ads-im-betting-against-it/

It's no rumour...
http://adwords.blogspot.com/2006/05/click-to-play-video-ads-for-adwords.html

What do you think of this service? From what I understand, when you actually click on the video you don't go to the advertisers website. I can't imagine many people using this on the web. But it would scale and overlap nicely with tv and personal video recorders.