First and foremost, a 1.2MB avi file used as an intro to your site is more likely to piss people off than entertain them. Broadband users would probably be alright, but folks with dial-up access(the majority of the connected world) would kill the page about 1 minute into it's load time. Even some Flash intro's are a pain in the posterior when you're puttering along at 56K or less. IMO, you'd be better off just linking it, and letting people decide whether or not they want to see it.
You could use the <embed src> tag to embed the video in your page or to stream video directly into the browser you could use a product like Windows Media Services
or Real Networks Server
As for that file size, I believe that free accounts are limited to a 250kb file size. Check with Max, Shv|HD, or Ted Sindzinski
to be sure, but I believe Max stated that in this post
[ July 20, 2001: Message edited by: Blackhawk ]