I used Easy Video Splitter, but I am by no means an expert. I used it because it was
Easy.
As for file-type, I've seen both but I think the consensus is mpeg if you can for compatabilty sake.
As for htaccess, I would say yes. I used Cleo's htaccess help page and according to that, it looks like this:
RewriteRule (gif|jpg|png|swf|
mpg|avi|GIF|JPG|PNG|SWF|
MPG|AVI)
Hope that helps.