An option besides Xtube would be great. The vast majority of what I watch there is home made BB videos, and they have made it a real chore to find those on the site. :mad: It really sucks to have your cock out, poppered up and ready to jack, and you have to sort through page after page of 15 second preview clips to get to a good video. Then it takes 15 minutes to load a 3 minute video.
As for paying for the site, whatever ads/etc. you do, make them unobtrusive as possible. That's what's killing Xtube right now, is they seem to be making it harder for free members to use the site. That's not going to convince anyone to spend - it will just drive people to other sites.
One thing you might try is a "virtual tip jar", where if people think you are providing a good service and want to support the site, they have the option of using a credit card, paypal, etc. to kick in a small amount to help. Don't know if it would work, but you never know.