Hi Ginger,
It is certainly possible to upload videos (or any other file) for students to download and edit offline and them repost it.
Take a look at the upload a file (resource) option and take a look at some of the assignment options which allow files to be uploaded by teacher and students.
Richard
Dan/Ginger,
I would suggest Add a Resource -> File to upload the original video for students to download - this doesn't embed it to play on the site, but that's not what was asked for.
And then Add an Activity -> Assignment: Upload single File for the students to be able to repost it for the teacher to grade.
http://docs.moodle.org/en/Adding_resources_and_activities
Not an activity I've tried myself I have to say (Primary children don't tend to have much access to video editing, and when they do, the files are on the local network rather than adding them from Moodle :D) but this would seem to be the logical way to achieve what Ginger was asking about - I have used the same method with Word/Publisher/Graphics files with 8-9 year olds.
HTH Richard
You should also check with your admin about how much space is on the server. Multiple videos edited with each eat a lot of space.
People who do multimedia may weigh in on this, but I'd look for any Open Source (free) conversion software to take it from mpeg to mp4 or beyond.
You might want to ask this question in the "Using Moodle" course, which is separate from the Social Lounge.
