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In order to add videos to the content of the LMS, you need to install and publish the allvideos plugin from here:
http://www.joomlaworks.net/extensions/free/allvideos
You can use the plugin to easily embed videos hosted on popular services like YouTube, Metacafe, Vimeo (and many more) inside your Joomla! articles (content items). Additionally, it allows you to playback almost any video/audio filetype directly from your server or a remote server, giving you the competitive edge when it comes to rich media content.
{ youtube}heu37ej3qs{/youtube}, { flv}batman_darknight {/flv} or { mp3}pixies_bonemachine{/mp3}.
All of the supported systems can be found on the above page too.