Well I think I'm going to give up on the video idea. I thought it would be cool to let people pull in clips and add funny captions/mix other funny videos into them, but Kaltura is just not going to work without a ton of effort. I got a complete Kaltura CE server up and running but the widgets don't work, the admin panels blow up with bugs, and everything about the software is trying to sell you their hosting, there's limited docs. I could probably make it work if I sunk a few weeks into it but its not worth it because the widgets are not easily customizable anyway, and I would want to pull out all the sneaky tracking code they weaved in there. Maybe I'll come back and mess with it in a few months or something. well enough ranting about that. Quite the disappointment after pulling my hair out to get it running.
So, back to the LOL image idea. Thats a lot easier to implement. I can still let people submit funny videos and then caption them myself. But then have the VaginaBuilder hehehe like LOLBuilder. At least images are shareable in forums, I can watermark them and provide embed codes. Actually...there might be a way to allow captioning videos... dynamically generate custom logo for licensed jwplayer.
...or throw adult content on it. Maybe I'm not seeing the opportunity there but I'm under the impression adult content is hard to monetize.