VideoEgg, which powers the video on sites like Bebo, hi5, Dogster, Piczo, Flixster and Tagged.com, will launch a new version of its Flash player on Monday.
If you visit any of those sites next week (provided they update), you'll see a "menu" appear at the bottom right - clicking this provides a "Grab It" code for users to embed the video elsewhere (I think embedding was supported previously, but not from within the player). Ads can also be placed in this section, recommended videos are provided and embedded players can link back to the actual site, rather than VideoEgg. These features should make the players much more viral.
Meanwhile, there are reports (via PaidContent), that VideoEgg has raised $3.48 million in additional 3rd round funding from an undisclosed investor in Luxembourg. Word on the street is that this company is soaring.