Can't "Insert Video) in WP (2.7.1) Blog Post

I'm not sure if this is the right forum to post in, so please bear with me.

I can't seem to load a video file onto my blog that I'm trying to build with the new version of WP.

I click on the "insert video" icon and go through the same procedure as I remember going through a couple of months ago (with my older WP blog). However, I end up with a link that, when you click on it (on the published blog page), opens a window to download & save the file to your hard drive .. without playing the video.

I double checked and I can "Open with" Real Player and the video plays just fine.

I used "Browser Upload" and once the video file was loaded, I typed in a Title, Caption & Description. However, I'm not sure what I'm supposed to do when it comes to the last part, about the "URL.

It gives me 3 choices: 'None', 'File URL' and 'Post URL'. I tired 'None' & 'Post URL' but each time I got the same results - clicking on the published link opens a download window ... it doesn't play the video. And when I tried "Post URL", the post shows my Title, Caption & Description (whereas the 1st two options - 'None' & 'File URL' - did not), but it doesn't play the video when I click on it .. although at least it doesn't do the download window.

I'm "dead in the water". Can anyone help me out .. without getting too terribly 'technical', which I'm decidedly (obviously?) not?

Thanks,
Richard