Best Answer Rob , 25 February 2013 - 11:52 PM
I apologize as I'm not being clear. Yes, you upload your video to the Media Library. When you do so, on the right hand side, you should see a URL for the video. You copy that URL and paste it as described above. It doesn't need Vimeo or YouTube. Just the URL for the video. Anything uploaded has a URL. Copying that URL from your Media Library would have the same effect as one of the video services.
The file size is set by WordPress and settings in your site. When you go to Dashboard > Settings > Media, you'll see the max file size. It's usually a minimum of 2Mb. However..... I don't recommend such large videos as they'll severely slow the load time of your page (where the slider appears), especially if the slider contains several images and/or videos.
Hope this helps.Go to the full post