The best solution I have found for this is AutoView. It is completely integrated with Moodle, you just create an activity. If you provide your own local videos as content, it is free. I just use the "save as" feature in PowerPoint and save all of my slides as JPEGs. I then use Irfanview to rename and resize the slides in batch mode to the proper name and size to be used by AutoView. It's a slick module and can work with HTML 5 video!