I've signed up, and accepted the following (from the Google Video Upload Program Terms of Service),
3. Use of Content. By accepting this Agreement and uploading Your Authorized Content to Google, you are directing and authorizing Google to, and granting Google a royalty-free, perpetual, non-exclusive right and license to, host, cache, route, transmit, store, copy, distribute, perform, display, reformat, excerpt, analyze, and create algorithms based on the Authorized Content in order to (i) host the Authorized Content on Google's servers, (ii) index the Authorized Content; and (iii) display the Authorized Content, in whole or in part in the territory(ies) designated in the Uploading Instructions, in connection with Google products and services now existing or hereafter developed, including without limitation in products developed for syndication. This license gives Google the right to copy, excerpt, distribute and display Your Authorized Content via both streaming and progressive downloading technologies, and to display limited excerpts of Your Authorized Content for no fee to the end user. Google reserves the right to display advertisements in connection with any display of Your Authorized Content. Notwithstanding the foregoing, Google is not required to host, index, or display any Authorized Content uploaded, and may remove or refuse to host, index or display any Authorized Content. Google is not responsible for any loss, theft or damage of any kind to the Authorized Content.
The twist is this, from the FAQs:
Can I charge for playback of my video?
Yes. Or you can allow users to play your video for free. This is totally up to you and your video distribution goals. As the content owner, you decide whether you'd like to give away your video for free or charge a price that you set for it. If you do charge a price, Google will take a small revenue share to cover some of our costs.
Update: PVRBlog has some screenshots of the uploading process and UI.