I want to compile images and sound into a embeddable Flash video online, similarly to what onetruemedia.com already does. What technology do they use? How would I go about setting up a server to do the same?
Not sure what they've used but what ever they've shown in their preview video is possible to develop in Flex.
Some kind of media server is needed too. People upload different kinds of video - avi, quick time etc.. and it needs to be resized and converted to flv or mp4.
However Microsoft Expression Encoder is good one too, you can use that on server to create videos on the fly with animation etc, and you can certainly define certain animation templates and you have Encoder SDK as well. Its new paid edition does have MP4 output which can be played on flash as well as silverlight.
If your are looking for pure open source thing then probably you should think about mencoder or ffmpeg. They can take jpegs as input with some sound file and create a video out of that. The good thing is that this process can be automated very easily. Have a look at stills2dv. Then use ffmpeg to transcode the video into either flv or mp4 format.
well, their output is, without a doubt, a video, otherwise you couldn't put it on DVD ...
yet the easiest way, if you only want it to be online embeddable, would be to have a server to put all the files to, a markup to combine these files, and a viewer for that markup ...