I believe that you tube use a simple web-based uploading system - there is no progress bar or any indication of how long the upload is going to take.
I should think that the best way is to use a simple PHP upload script but I don't think you will be able to get a progress bar.
Alternatively you could look at using a java applet, this would allow you to have a progress bar and a more friendly interface, though it would rely on the clients browser supporting java.
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