YouTube and Google both let you embed the video directly into your web page without any ads. And honestly, a few text ads are a small price to pay for free video hosting.
If you use Google Video, people can download the higher quality versions directly from Google, or stream the Flash version. Again, you can use an embed code to place the video directly into your web page. I did
exactly that when a local TV station did a small report on our local track.
Peak distributed some high quality versions of their races videos last year, and it was a REAL treat. I keep those on my computer and watch them from time to time to try and learn/understand the lines fast people take around the track.
What about DivX?