You can compress it, you can even do this in Windows Movie Maker so long as it can read the source format, or you can use specialist software to do it.
But sending video via email is unlikely, unless you have your own private email account and servers, there will be too many restrictions in place to do it.
Use
MegaUpload as thats by far the best free filesharing service around at present, very fast and no limits on downloads for free users (despite what it says). The qualities of each of these types of services changes like the weather, but on the whole MegaUpload has remained pretty much the same for the past 8 months or so.
Dependent on the size of the file, it could take a while to complete. If you have o2 Broadband, Be or Demon etc, you will have stupidly fast uploads, but most ISP's send data a lot slower than they recieve, so you could be looking at hours im afraid.
If its larger than 600MB and you have a slow upload speed, then it could be worth looking into compressing the file. I forget what software I use (its on the media centre) but im sure Ste will be able to point you in the right direction.
If you just want to use some webspace temporarily, I don't mind giving you as much space as you will need on one of my webservers, and you can upload it to that and then send it to the person you want, you can even password it etc.
When sharing files, id recommend rarring it with password encryption whatever you do, just to stay on the safe side. The people who you want to have it, you can then give them the password.