How to add video playback and resource to android application

You can put a video into app resources - just put it into res/raw folder. You can play it like this:

VideoView videoview = (VideoView) findViewById(R.id.videoview);

Uri uri = Uri.parse("android.resource://"+getPackageName()+"/"+R.raw.splash);

videoview.setVideoURI(uri);
videoview.start();

The main thing to consider here is the size of your video. As video files can be quite large, your resulting apk file can also get unacceptably large. Personally, I would rarely want to download an app from the market that weighs in at 10 meg (there are exceptions, of course).