Yes I did this for a forum that I run. I use invision so the code went something like this:

Code:
<object width="425" height="350" type="application/x-shockwave-flash" data="http://yourdomain.com/player/player.swf"><param name="movie" value="http://yourdomain.com/player/player.swf" /><param name="flashvars" value="&file=http://yourdomain.com/flvideo/{content}.flv&height=350&image=http://yourdomain.com/thumb/{content}.jpg&width=425&location=http://yourdomain.com/player/player.swf&logo=http://yourdomain.com/templates/images/watermark.gif&link=http://yourdomain.com&linktarget=_blank"/></object>
The {content} is basically where a user would post just the flv filename. The only problem with this is that the thumb cannot be generated as the filename and thumb name differs with vshare so it just shows up as black but it can be played in-line on a forum. You could use a universal thumb as the jpg and not include the second content tab with something like "click here to view" with your site address included.