Where to upload AVI files?

I installed the Viper plug-in, which helps embed various video files into your blog posts. But when you click on the button to embed an AVI file, it asks you to enter the full URL to the AVI video file.

I’m assuming that means the address of my host site, where WordPress is installed. If so, what sub-directory do I upload it to?

Now, when I include graphics in my blogs, WordPress is automatically uploading them into ‘… /wp-content/uploads/2002/09’ (apparently each month it creates a new sub-directory for graphic files).

So — do I upload my AVI files to the most recent monthly sub-directory, or should I create a separate subdirectory for media files, something like ‘…wp-content/uploads/2006/media’ ???

And a follow up question: after the file is uploaded, will it automatically play when the blog page is loaded, or do I have to install an AVI player too?