Dinkar;

In Acrobat 9 (which is what is being discussed in this thread) you can embed video in Microsoft Office applications before creating a PDF, there is a "Create PDF" from the Acrobat ribbon/file menu and a PDF will be generated with the embedded video/Flash included and functional in the PDF.

Acrobat 9 still supports the methods you outline using WMV, AVI, VOB etc using the "Legacy Multimedia" tools but also supports a new method of embedding video/Flash that uses the internal Flash player for playback and DOES NOT RELY on the viewers system having the right player to play back the content. Also in Acrobat 9 you can embed H.264 encoded movies allowing high quality and good compression.

Josh