Is having a customized video player on your website good for SEO and link building?

I would have t say no!

What woudl help for SEO is submitting that video to you tube and getting in direct traffic from their high SERP rankings!

I don't believe so but however it could give your website a boost in attracting the web user. Which in return could give you increased traffic. It seems videos would be the same at images with text build in. Search engines would not be able to establish the text. I

It would have no effect on seo or traffic!

There's no effect on it for as long as your website doesn't contain any flash objects because flash websites is not search engine friendly..

I think there is no effect of doing this.. ultimately whenever the site is crawled, it only crawls the pages under text version, so no need of video.. you can use it in u-tube and upload to higher rank in serp..