I own a few sites and don't want to use up disc space twice for one video.

so when I upload a video on one of my site, i'd like to be able to show that video on my blogs that are hosted on other sites.

Wordpress 2.7 has the option to "upload/insert" videos. when I select that option, I'm given 3 more options:

1. From Computer
2. From URL
3. Media Library.

I tried the "from URL" feature and all it does is insert a simple text link to the video, when what I was hoping is that it would embed the video into my page. Is there a way to do that? is there a plugin that will allow me to do that?