Server Setup for Streaming Video | Freeware Plugins | Support Forum

First off I recently purchased Gallery Magic (love it) and I am pondering buying the KVS video plug in. What I am curious about as I am getting ready to acquire new VPS hosting is what does my server need to have installed properly stream videos using wordpress and the KVS video plug in?
The host I am considering offers all the options below, but I am not sure what I need. I want the user to be able to fast forward to any point in the video.

FFMPEG, Streaming modules, mencoder, mplayer, Varnish Cache, Memcached, Alternative PHP Cache (APC), Lighty

[Yes, I realize not all of these deal with video playback]