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You install the script and then when you upload your first video, nothing happens, that is there is a thumb, but the video just stays there loading, if you have this problem then add a php.ini file:

PHP.INI

Safe Mode, maximum size of a file which can be uploaded, etc.
You may download a working version here. (unzip it and upload to your public_html folder)

This file as the following settings:

safe_mode = Off
max_execution_time = 30 ; Maximum execution time of each script, in seconds
max_input_time = 60 ; Maximum amount of time each script may spend parsing request data
memory_limit = 32M ; Maximum amount of memory a script may consume (32MB)
register_globals = Off
magic_quotes_gpc = On
; Maximum allowed size for uploaded files.
upload_max_filesize = 200M
allow_url_fopen = On

This settings can be modified to your script specifications.

 Or if there is no convertion at all, there is no thumb, there is no flv file, then:

try this path for PHP: /usr/local/bin/php

on the config.php inside the include folder.