I think the main difference is that Veotag is a web application. They host the videos online and you can browse them like Youtube.
While your product has more functionality, it's difficult to get running because it requires Java. I think the social or "Web 2.0" aspects of Veotag makes it somewhat more useful.
As soon as juwo can control Flash player, I plan to create a Best Of Youtube website, where people can juwo videos on youtube, and share them. Please look at the Heather's blog American Idol demo.
No cofounders, nor investors, nor users. That is the frank truth.