From what I see, it is based on YouTube. I'm not too familiar with YouTube's ad rules but can Google pre-fix any video with an ad? If so, can someone else put their ad (via YouTube ads) before my Virool video ad?
Google will only display for videos that opt-in to have ads displayed before them. Also, they will display videos watched on YouTube.com. Hence, of videos we promoted so far, we haven't seen anyone have pre-rolls appear in their vids.
Might want to proof-read the FAQ some more. I'm seeing sentences like: "Since system is auction-based you result may vary depending on current load of our network. For example if you maximum bid is 5 cents per view your ad will be only shown after all more expensive videos."