Setup:
You setup the video channel similarly to the way you do Adsense code except you get to choose a channel and only have one size to choose form (300×250). The nice part is they allowed it to be your 4th ad block if you already had 3 up. You have the following video channels to choose from (New ones will be added):
NBA
Tower of Rock
Only Hits
Fresh Clips of the Week
Hip-Hop Hustle
WSJ.com Video Channel
Pop Video Channel
Hip-Hop/R&B Channel
Epicurious Cooking Techniques
Style.com Fashion Channel
LX.TV Lifestyle TV

I chose to run the WSJ.com Video channel on a site geared towards investing and Fresh Clips of the Week on some general sites. Just copied the code and put it in just like normal adsense. Below is what the ad looked like for WSJ.com Video Channel.

Performance:
I tested the videos performance within the adsense setup as it is against adsense TOS to click on your on ads. I was please with the performance of the videos as in playing and clarity. More and more people are having broadband and these video channels started as soon as you clicked. The video was clear and the audio was crisp. I did not experience any hiccups.

Earnings:
I had high hopes for good earnings especially with it being a test run. The earnings were so great after 3 days, I removed them ALL!  Yes you heard that correct they are no longer up on the sites. Maybe I have my sites so fine tuned to regular adsense that this medium didn’t perform well, but I doubt it. The per action for someone clicking on the video versus a regular adsense ad was pathetic. So I removed them all.

What sites this would be good for:
The only sites I think this avenue is good for is Myspace and Arcade type sites because most are earning so little off regular adsense this would be a step up and due to it being video and more people may click on it since it is different.

This is just my experiences if someone has had a different experience or the feel same about Google Adsense Video Distribution free to leave a comment.