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Setting up a video sharing website is not so hard if you know knowledge about web design and active page technique, like PHP, ASP.NET, Java...You will create login, logout, sign up system, upload system, database system to store the videos uploaded by customers and information of customers. You have to get a sever-based video to flash video encoder engine like Adobe® Flash® Media Interactive Server 3 if you can afford it to convert all formats of videos uploaded by people to flash video. If you have all these knowledge, tools, money and time, you can do it.

Have a look at this guide to see if it can help you: http://www.estetica-design-forum.com/general-web-d...

Good luck!