edit - using the embed only function for vids, it allows to embed, but still doesnt just play in timeline, instead it redirects to the videos page to play, losing place on timeline...
Yes, but it requires some code changes to the timeline. First there are two types of videos, embed and upload; once you have created the embed or the upload, then you have to insert the video player and the proper link to the file, for uploaded you use the Dolphin html5 video player, for YouTube, you insert the code for the YouTube player. Once the code changes are in place, then videos will play directly in the timeline.