Unlike MySpace you can’t directly embed videos from YouTube. The only option you have with Facebook is to use the Video application in order to upload your videos (stored in your PC, transfer them from your mobile phone or record them directly) to your profile. Most popular formats (avi, mpeg, mpg, flv, wmv etc’) are supported. To insert a video into your profile follow the directions provided below:
1. Login to Facebook.com.
2. Under your Applications click Video.
3. If you don’t have the Video application, you will have to click the Application button. Then search for the word ?video.? Then click on video, and on the video page click Add video to your Facebook account.
4. Now that you are in the Video application you are free to upload videos.
5. When you find a video you would like to share with your Facebook friends, simple click the add button and confirm it being added to your profile.
"TRICK--- upload videos on Facebook. "
Reference : avirtualexit.com