The first feature added to Blogger's labs is video uploading: you're now able to upload videos directly from Blogger's editor. After you click on the video icon, you only need to select a video from your computer and to enter a title.
The video will be uploaded to Google, but until it's ready you'll see this nice placeholder:
You can continue to edit the post during the upload, but you can't publish it until the upload finishes. The video can be aligned and resized in the rich-text mode and that's a good idea since the initial size is very small.
<object id="BLOG_video-b1ce175e95d1aa16" class="BLOG_video_class" contentid="b1ce175e95d1aa16" height="255" width="291"></object>
The videos don't seem to be uploaded to Picasa Web Albums and they're not available at Google Video either, so it's unclear how you can reuse them or share them. Blogger mentions that "your videos are kept private and will not be included in Google Video search."
Update (August 24): the feature is now available at Blogger's main site.