I too was able to use YouTube. That is our backup plan. Was just hoping there was a fix. Uploading to YouTube just adds another layer.
Thanks for conforming for me.
Hopefully it gets resolved
Apple Foundations Trainer
Digital Learning Specialist
I just did a test with Google Sites... I did recreate your problem with an uploaded MP4 video to Google Drive; it would not play on an iPad2.
I then uploaded the same video clip to YouTube and inserted that into the site and it works fine. Would your students be able to use YouTube to upload and then insert into their sites? If not, you'll have to investigate the embed code for the Google site template you are using.
Here's the Google site test that I created.