What in the world, it worked using simple uploader. Wow I guess the video module is buggy. Oh well. Thank u brother man!

With pleasure, but it shows that you still have the problem of timeout, and I do not see why the fix worked for me and not for you.
To be on, download my file and send it to inc/js/classes/
and empty your cache in console and in your browser
If that does not work, then the problem is elsewhere and it is good to say it.

Yep it worked, wonder if upgrades will overwrite  these fixes