yeah it does but there obviously certain restrictions:
Uploading to Picasa Web Albums
Videos uploaded to Picasa Web Albums can be no larger than 100 MB in size. You can upload videos to Picasa Web Albums using the the Upload button. When uploading, please keep in mind that video files cannot currently be downloaded from Picasa Web Albums.
Once you're video is uploaded, adjust the viewing size using the Google Video button or the audio and video quality by toggling the View HQ video link to the right of the video.
to be honest facebook is pretty limited - you might get sick of creating loads of albums to accomodate all your photos - picasa is better in this sense