programs, bah.
www.jumpcut.com - does it, hosts it, all you gotta do is hyperlink or embed it. You could also buy a Mac, just drop all your stills into iPhoto and get iMovie to make it in a couple of clicks. MPEG - MPEG-4 is a compressor - does AVI and QUICKTIME. Alternatively save as AVI or QUICKTIME .. avoid WMV it is a big fat dog. MPEG4 is the current weapon of choice. Small files, great quality. MPEG4 often used the popular 'torrent' compressor - DIVX or XVID.
You can also use
www.media-convert.com to change formats or
www.zamzar.net (I think). Jumpcut is like YouTube but you can mix and edit it. Still free. I would suggest however that you simply make a photosteam using FlickR. Host the pics via a feed and import into a Blog like
www.wordpress.com - fast and free.
Applications are a thing of the P A S T.