AOL just released a cool gadget for the Vista sidebar.

It's still in beta and 'hangs' every now and again. This does not affect the rest of Vista though and all other gadget keep running too.
Download at: http://dev.aol.com/video_gadget.

Main annoyance so far is that in Medium mode it tries to show how long ago the video was posted, but this takes most of the space in the subtitle bar. This can be changed by going to the preference page and changing the settings for Playback size to 'Large'. The subtitles now scroll.

Update: The hanging occurs when the AOL video service cannot be reached.