Trying to edit CCK field and I get "Only web-standard videos are supported through the videoftp widget."

typo in the error; it should read videofield instead of videoftp.

/**
 * Implementation of CCK's hook_widget_settings($op = 'validate').
 */
function uploadfield_widget_settings_validate($widget) {
  // Check that only web images are specified in the callback.
  if(!video_web_extensions($widget['file_extensions'])) {
    form_set_error('file_extensions', t('Only web-standard videos are supported through the videofield widget. If needing to upload other types of files, change the widget to use a standard file upload.'));
  }
}

One more question; If I'm using FFMPEG shouldn't I be able to upload just about any video type and it will be converted? why limit it to only these listed here?

/**
 * Compares passed extensions with normal video web extensions.
 */
function video_web_extensions($ext) {
  $extensions = array_filter(explode(' ', $ext));
  $web_extensions = array(
    'mov', 'mp4', '3gp', '3g2', 'mpg', 'mpeg', // quicktime
    'divx', //divx
    'rm', // realplayer
    'flv', 'f4v', //flash player
    'swf', // swf player
    'dir', 'dcr', // dcr player
    'asf', 'wmv', 'avi', 'mpg', 'mpeg', // windows media
    'ogg',
    'ogv', // ogg/ogv theora
  );
  if (count(array_diff($extensions, $web_extensions))) {
    return FALSE;
  }
  return TRUE;
}