Kroc pretty much sums up what you will have to do. I would like to make a side-note to make sure you understand that full-screen HTML5 video ≠ full-screen flash video. This might not be important for the iPad, I don’t own any iDevices so I wouldn’t know.
The most full-screen you can get with the video element is filling the browser viewport. Flash offers an API to go into real full-screen, filling the whole screen.
The one browser that offers a full-screen API is WebKit, and it seems Safari on iPad will offer this functionality. If you are looking for an iPad specific solution this might help you along in the right direction: stackoverflow.com/…
“Is this something that would be something you could make work in a for-hire situation?”
Sure, you can do that with any problem, as long as you find someone who is willing and capable of spending some time on it ;)