Yes. Upload your video (quite a few formats are acceptable), wait
about a day for them to encode it, then download it from their site.
There are a ton of tools that let you download (or just grab the full
URL of the video on their servers) My kids use something called
"Ook", it is a FF extension that will either download the FLV or give
you the URL of the FLV to use. Both my 22 year old son and 11 year old
daughter do this all the time for videos on their MySpace. (Their dad,
a self proclaimed Flash god, built them custom video players for
MySpace so they don't have to use that nasty YouTube player)
There are also several freeware, shareware, and commercial options for
encoding the video yourself. But they are obviously OS specific.