Yes, and the documentation of that plugin exactly tells the requirements of above:
Quote:If your video can be played natively in your browser, or if you have FFMPEG or LIBAV installed on your server, you can generate thumbnails from your video.
No shared host - our target base - I know including mine has any of these pre installed nor would it allow you to do so. Not even our zenphoto.org server does have these.
Quote:If your video can be played natively in your browser
They tell this but I know of no way to extract an actual frame without the above libs. Following the html5 video spec the first frame will be used if no poster image is defined. MAybe there is a way doing this using canvas but that will only work in a few browsers and to my knowledge none of our players has support for it.