I had a whole lot of confusion today around Vimeo embedding, because all my searches were turning up the wordpress.com Vimeo shortcode: http://support.wordpress.com/videos/vimeo/
But clearly the downloadable WP 2.7 doesn't support this. Why? Not even as an official plugin? I found this custom plugin: http://siarto.com/2008/10/02/vimeo-wp-plugin/ , which works, but I'm just baffled that the hosted blog would have this feature but the downloaded blog does not.
Am I missing something? Thanks everyone! :D