Charles:
I highly recommend you download and install the Advanced FLV filter available on the Moodle downloads. I have found that it has better controls such as autoplaying and even allows the students to go full screen.
http://moodle.org/mod/data/view.php?d=13&rid=1756
Secondly, I also recommend you convert any video you use to an FLV (Flash Video). Flash plays on 95% of the computers out there, plus it is cross-browser compatible. Here is a free tool you can use to convert any video to FLV.
http://www.mediacoderhq.com/download.htm
Hope this helps.
Lesson
Video controls
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