If you're looking for a more Flash-like player experience without the quality hit of reencoding, you can use Silverlight Streaming. It's a free account with 10 GB of storage and 5 TB of transfer a month:
http://streaming.live.com
You can upload your existing WMV, and as long as it's within specs, it'll make a Silverlight player for you.
You can also upload straight from the new Expression Encoder to the service, if you want more control over the skinning and such.
http://on10.net/blogs/benwagg/Expression-Suite-2-and-Expression-Encoder-2-n...
Ben Waggoner
Principal Video Strategist, Silverlight
Microsoft Corporation
Compression Blog: on10.net/blogs/benwagg/
Compression Classes at Stanford and PSU: on10.net/blogs/benwagg/21622/
