Yeah, I've already got lighttpd working on my current installation today. Works great.

The issue of hotlinking, for me, may be a bit different from others. I don't mind someone embedding my videos on their sites or whatnot. What can, however, become a problem is if someone runs their own player and link to my files directly. That's what I believe most of us here would like to avoid. Using RTMP (and even lighttpd), there are ways to secure the file such that it can only be called from certain players (or your sites player in particular). This is what I am trying to accomplish now.