[Plugin: Secure HTML5 Video Player] Directory issues

I installed this plugin in and now there is a widget available named secure HTML5 video player I assumed this is the widget to play videos for this plugin correct? I can not find documentation on it.

My main question..I am unsure if I understand the instructions on how to initially set this up. Am I supposed to copy and paste one of the directories in grey (as is), for example it says “Your public_html directory is:…” then gives info. I tried that and it did not work. Then I went into my hosting control panel and used the FTP file manager to create a new directory named videofolder and uploaded a video into it. Then I went back to the settings and in the video directory what am I supposed to put? Where do I find the directory info that goes there? Are the videos pulled from my wp media library?

I know this plugin will be great once I figure out the initial setup. I read through the posts on the plugin website and on here but still can not find any well explained instructions for the less techy on the video directory setup.

http://wordpress.org/extend/plugins/secure-html5-video-player/