Here is an updated instruction:
1) Create JS asset with name "video" and paste this JS code https://raw.github.com/macdonst/Video...
2) On Source tab in Android/projectName/src/com/phonegap/plugins/ create "video" folder and in this folder create file VideoPlayer.java, paste this code https://raw.github.com/macdonst/Video...
3) On Source tab in Android/projectName/res/xml/config.xml (after line where PushNotification added) add pre<feature name="VideoPlayer">
<param name="android-package" value="com.phonegap.plugins.video.VideoPlayer"/>
</feature>/pre