The only problem with that is loading time. The whole movie must load before it will play unless you stream a movie from within a container, as in the satay method.

I was doing it that way for a short period of time and went back to the embed tag because it made for a better presentation without the need to play a movie from a container.

I really don't care if the embed tag fails validation because it simply works and is cross browser friendly. And that's the whole point of validation, anyway.