The video is shown in the thumbnails area, when hovered it will change the main image to the videos thumbnail.  When clicked it will pop up the picture popup and load the video.  The popup handles going back and forth between images and videos, each with a thumbnail, right and left buttons, and more.
Height and Width Settings (Themes > ActiveTheme > PicturePopup): Uses these dimensions when selected picture is a video.
Photo Settings on Product Editor, just paste in your youtube, vimeo or any other hosted video links in and we take care of the rest.
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