Yeh, I can.
You can only have a Direct link if you host the video on another server. The "Local" means that your video is now on the .ORG server (Is it the Dangling Carrot or the Goldun Donut, I can't remember) which is, quite obviously,Local, as its the same server the site is running off.
So yeh. Unless you can put the video up somewhere else on the Internet, you're stuck with local for now. And anyway, Local downloads are a great place for a beginner to start. I mean, its totally free. Ok so its a little slow, but...ITS FREE!!
Hope that helps. Oh btw, u should check out my video, its located here:
http://www.animemusicvideos.org/members/members_videoinfo.php?v=17837
and is the first one i put on the net. Tell me what u think (dont worry, I've had compliments as well as criticism, but no-one has said its shit, so...im confident)