I'm afraid that there's no direct way you can do this on a Wordpress blog. The best alternative is to have a YouTube niche script like this: http://www.advancescripts.com/detailed/15245.html running on a separate directory and linking it from Wordpress.
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There is many aspects to take into consideration and the big two are the rights and bandwidth. What I would suggest is to teach people how to put video on youtube and send you the link via a form. Generally, just a forn can do the job. You can say, send me the link of the video you put in yuoutube, google...
Then you can take the url and put in your website like here: http://www.vreforcash.com/how-to-make-a-website/how-to-buy-a-domain-name/
Putting directly the video in a website brings cost for the website's owner. If many persons see the video, the bandwidth increase. For a limited bandwidth in sharehosting account, you'll be out of your limitation.
Concerning the rights, people use freely videos from youtube and you'll be safe from any kind of problems. You can just said, you've syndicated a post from Youtube
Hope this help
You can, but you need to make sure that you have your own hosted blog. If you are using a Wordpress.com hosted site, you can't.
You can find a tutorial here: http://blogpair.com/
It's not free, but it has the information you need and more.
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