Multimedia plugins filter
The Multimedia plugins filter finds a link in text that points to a multimedia resource and replaces the link with an appropriate multimedia player code which can play the resource. The actual player resides on each users' computer.
For example, a teacher may put a MP3 audio file as a resource in their course, or have a URL link to an external MP3 file. When the MP3 audio plugin has been turned on, the student will be able to play them in Moodle using a media player on their computer. See also Media embedding.
Site administration settings
A site administrator can enable the multimedia plugins filter in Administration > Site administration > Plugins > Filters and can enable selected media players in Administration > Site administration > Appearance > Media embedding.
Required software on user's computer
Although Moodle prepares the media files to be played in the browser, the actual playback is handled by various types of browser plug-in software, primarily Adobe Flash, Quicktime, Windows Media Player and Real Player. If users do not have these installed they may be prompted to go and install them by their browser. These pieces of software are generally free, easily installed and widely used so this will only be an issue for small numbers of users.
Using Moodle forum discussions:
Best Video Formats
This could do with a little updating/editing. (Feel free to edit)