embedgoogle-drivevideo
The UI does not have an "embed" button.
I managed to make it work copying the HTML from the Docs site (using Firebug and Developer Tools, because the HTML is injected via JavaScript).
But it seems that the vars are timestamped because the video stops working some minutes later.
Is there a way to embed them or must wait for Google to support it?
There is a way to embed a google drawing on web or in another doc.
On the drawing doc:
Copy this url it gives you.
Go to the other doc you want to embed it in:
It will now be linked and updated as a image when you update the original drawing.
I think you misinterpret what the user interface is saying.
There are two options in the video interface.
You want option 1. If you want to add some text you can use the caption.
Another way to do this will be a regular "Add a Text" Post
From there you can use html and YouTube embed option (using the share link at the bottom of a YouTube video) to place it where ever you wish.
Example
<p>Go for text</p>
<iframe width="560" height="345" src="http://www.youtube.com/embed/IwX3FdwMCUs" frameborder="0"></iframe>
<p>And here goes the rest.</p>
Best Answer
The Google Docs UI has changed again.
If you want to embed a Google Docs video on any website (not just a Google sites err… site), now you need to click 'File' then choose 'embed'.
But, be aware that only those with permissions to see the video will be able to play it.
In other words, if you've set it to private then most people won't be able to play it.