Microsoft (the MSN part) is testing Soapbox, a YouTube like video site. It seems to work quite fine, except for some 'stops' when looking at a video (but maybe that's my bandwidth falling short). The navigation is more intuitive then YouTube but it looks like it was designed 10 years ago, AND it has the horrible MSN-blue background ... yuck.
Access is invitation-only at this point, but syndicating movies seems to work OK. This YouTube spoof should be appropriate for the occasion: