Patrick Lacz, Software Engineer Announced:
“Happy New Year! We’re starting this year by making it easier to view memories from 2010 that you’ve uploaded to your document list directly in your browser. Just click on a video in a supported format and press play.”
That means Google Docs has just introduced support for video playback. Now you can upload videos file into google doc and watch preview direclty from google docs via standrad YouTube player. A number of formats are supported and most videos should already be available for playback. To date, while users can upload any file to Google Docs, only a few types could be previewed without downloading them.
Source : Google Blog