Ages late coming to this, but maybe if someone else is considering the same question...
You can see all the best hosting alternatives in a side-by-side comparison of embedded windows allowing you to make a direct quality comparison.: Video Embed Tests
I think a good option for you is Vzaar. It's the 4th down (and featured again towards the bottom). There's also a host of tips to help you design a web page with an embedded video window.
The site's about to undergo a major revamp, and an HD sister site is being prepared.