I don't have Flash active (for security reasons) so I couldn't look at the site you linked to, but the Twine project below uses animated GIFs with a "control panel" below the GIF to move around the map:
VValkabout - http://philome.la/PatrickLauser/vvalkabout
(Warning: The page includes sound, so don't be surprised when the audio starts.)
You don't have to use GIFs, you can use videos (.MP4 or .WEBM are recommended), but that code should give you an idea of what can be done. Hopefully that's what you meant by "interactive video".
If you download that HTML file you should be able to open it in Twine to see how the code works.
Hope that helps!