I got the getid3 to work with my video files. For the thumbnail creation, you will need the program call snatchit. Their newer version come with command line support.
I have test it on my own server and my own personal computer.
For the command line to work, your server cannot have any other codec than window media. The uploaded clips have to be standard. Divx and other codec won't talk the command line syntaxes.
The problem I am facing now is that the command line script creation and execution.
I can use php to create a standard .bat file and execute it on the fly. However, I won't get the any feedback from script. The only solution I have is creating a temp directory and dump the thumbnail in there. Then use the move file feature in php and copy them to appropriate directory.