PS, here is an example of what I am trying to create: http://www.craftedu.com. These videos will play with a short preview and then you will have to pay to view the rest of the video.
I will have my videos hosted on Amazon S3 for security.
I currently have Nextgen gallery plugin installed and using your instructions I've created a gallery with test products. I like how everything is looking, but would like to make one change.
Is it possible, when someone clicks on a thumbnail for the video, it opens in a new window that they can then play the video?
Hope I've explained myself well enough.