After running into the same issue - here're some of my thoughts:
As it affects only Chrome (other browsers work fine with VideoForEverybody solution) the solution I've used is:
for every mp4 file, create a Theora encoded mp4 file (example.mp4 -> example_c.mp4) apply following js:
if (window.chrome)
$("[type=video\\\/mp4]").each(function()
{
$(this).attr('src', $(this).attr('src').replace(".mp4", "_c.mp4"));
});
Unfortunately it's a bad Chrome hack, but hey, at least it works.
Source: user: eithedog
This also can help: chrome could play html5 mp4 video but html5test said chrome did not support mp4 video codec
Also check your version of crome here: html5test