Not a bad idea, I think I'd like to help. I've made a flash video delivery system out of php before with a simple video uploader. The server converted the video to an flv with ffmpeg and bam, its online. If you seriously want to consider doing this idea I'd volenteer the use of my own server and some of my code. My server has 2.5 terabytes of bandwith and 300 GB of space. Enough to get it started.
If your more interested email me or PM me.
Also the name "First Tube" might be copyrighting youtube.
