can the video be paused at some point and resumed by the user? to make it more interactive
I don't think there is any way to program that type of functionailty directly into AVI, MOV, WMV or MP4 files.
You could make multiple videos and put them all in a powerpoint file and set powerpoint to pause at the end of each video awaiting user input .
A web search might turn up ways to handle it with HTML5, youtube, or specialized video players.