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I embed the video on both black and white websites, however. Is there a way to remove the background color all together?

Hey guys, So, when trying to embed the videos on a dark background, for some reason, there is always a white background behind the embedded video. How do I get that to go away? URL for reference: http://www.hentaibeta.com/watch/subbed/episode/koi-maguwai-episode-1

Hey, So I finally got everything working, thanks to Adam, however, I'm having one final problem. I upload 80-100MB .MP4's, however, after conversion, they're all around 250-300MB. Is there a way to reduce that to a reasonable file size? as I have 100TB servers, that will run out fast if my...