There are many paid shareware applications out there which enable users to embed videos in Word. If you have been on the lookout for any free way to embed.
http://www.addictivetips.com/microsoft-office/how-to-embed-youtube-videos-in-word-2010/
DawsonITE is a blog devoted to Educational Technology. It's compiled by Rafael Scapin, Coordinator of Educational Technology at Dawson College in Montreal (Canada).