I reinstalled the Combo Update for 10.5.6 onto my Macbook Pro and it solved the freezing video issue. I think it is related to the pulled NVIDIA update and the combo update might have overwritten it (not sure). I am trying the same on my Macbook Air now to see if it will help.
Edit: My Macbook Air Rev. B can't play it without stuttering, but it seems to be an issue with Flash. It is a lot better now with the combo update reinstalled and the big issue for the Air seems to be Flash taxing the CPU too hard at 1.6GHz. It plays fine until it decodes more of the video then pauses as it hits the CPU very hard. GPU acceleration will help a lot with that and a 64bit rewrite of Flash will help too. Snow Leopard should be pretty interesting.
I haven't had any video problems with MBA revB SSD and am curious is this is limited to the 1.6's oor the SSD version as well? Any commments?