Aaron Winborn on the Media module
Aaron Winborn of Advomatic and author of the Drupal Multimedia book talks about the new Media module and how it will treat external media embeds as a part of Drupal's file system. He also talks about the API, and the stream wrappers that are being developed that will allow you to have both private and public files exist on the same Drupal site.
For more information, check out the Media module FAQ, the Media group or the Media project page.