Talking of the Netherlands VPS, at which point will the "unmetered" bandwidth offer be capped at? I'd also like to know the usual transfer speed on a node. What is the DC you're using?
Downloading the video is easy-beasy. There are tons and tons of different classes for it in different programming languages. I've rolled my own some time ago. http://paste2.org/p/1846046
Putting the watermark on the video is also a piece of cake...
Ah, thought you might have been using a VPS for this sort of job.
Well, on Windows there's also SUPER, which I found pretty handy ages ago. It made use of ffmpeg on Windows platform, so it was indeed a nice GUI.
What platform and environment are you on?
Windows: anything from ffmpeg to Xilisoft Video Converter etc.
Linux VPS: custom compiled ffmpeg all the way.
I personally prefer Drupal to Joomla because of the coding structure. It's also much more lightweight. The downside is that Drupal is told to be quite insecure compared to Joomla. It all depends on what you're planning to do.
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