That being said ... the iPad has introduced the need for, hopefully, temporary work arounds. Our clients are heavy users of iPads. As much as we wanted to use Flash we don't because of the issues with iPad. We use MP4 and it is working.
For the person that asked how to get at the HTML...
On the text editor for Page, Quiz, Lesson or whatever Resource/Activity we click on the HTML icon.
Once the HTML screen is open we copy and paste the following HTML:
<table style="border: 10px solid #a9a9a9; width: 490px; height: 290px;" align="center" border="10" cellpadding="5">
<tbody>
<tr style="height: 10px;">
<td>
<h3 style="text-align: left;"><span style="color: #993300;">Instructions: Watch presentation then return to course.</span></h3>
</td>
</tr>
<tr>
<td style="text-align: center;">REPLACE THIS WITH iFRAME CODE FROM VIMEO OR YOUTUBE</td>
</tr>
<tr style="height: 10px;">
<td>
<p style="text-align: center;"><span style="text-decoration: underline;"><span style="color: #0000ff; text-decoration: underline;"><a title="Return to course main page link" href="http://XYZ.COM">Click here to return to course main page.</a></span></span></p>
</td>
</tr>
</tbody>
</table>
Once we paste the above HTML we tab over to Vimeo (YouTube or wherever iFrame embed code is provided), we copy the iFrame code and then replace the red font section above with that iFrame code.
We also find it helpful to provide a link directly back to where we want the user to go after viewing the video so we replace the http://XYZ.com with the URL to another page on our Moodle site.
All of the above combined will create a 3 row table, it will place some instructions in the first row, the video in the second row and then the link to return in the last row. The code also centers the table on the screen and places a gray border around it. We came up with the width by trial and error testing on iPads, Macs and PCs to get the widest possible (490px) without cutting off the right side or causing the browser to add the scroll bars.
Vimeo allows the admin to create some standard settings. In those settings we tell Vimeo to create the iFrame code using height="270" width="480. These are just slightly smaller than the table cell so by the time a border is added the video fits snuggly inside of it.
Works for us anyhow.