Hi Parmenti,
We are unsure as to the timeline for FlatVideo. This is one of those projects that we have almost ready for launch, but we have so many things on our list, that never get to it.
FlatVideo uses a Flash Media Server for recording, but the playback goes through regular HTTP to a Flash App.
For the Flash Media Server you can run the servers yourself, or pay a Flash Hosting company. If you want to host the Flash Media Server yourself, then you need to run either Adobe's Flash Media Server, or Red5. Of these two Red5 is the most inexpensive (free.

).
Thanks.