Moved the video over to the computer using the capture function in Roxio's Easy CD/DVD Builder package (version 6). This resulted in a 6 GB avi file for about 30 minutes of video.
Importing this into Windows Movie Maker automatically split it into scenes. I then save the scene I wanted at 320x240 pixels frame size, 30 frames per second, optimized for 384 Kbps bandwidth (half the rate of yesterday's video). The original video is so dark that I can't see a huge quality loss in this case. The file is just under 5 MB.
Used Macromedia Flash to convert this into a Shockwave Flash file, and the rest of the steps are the same as yesterday. When I have more time, I will experiment with adding video controls to the Flash. There must be some easy way to do that.
(Later) I didn't like the video quality; it had a lot of line artifacts that I thought might be due to Microsoft Movie Maker not handling PAL (the European TV standard, which my video camera uses). I discovered a new version of Movie Maker available free from Microsoft, which has a PAL/NTSC setting, and that does seem to have solved the problem - much better quality for the same file size.