I have a wordpress site for which I want to provide videos for money. I thought about using youtube: user creates an account > user pays > gets access to a private page on wordpress (with a plugin) which has youtube links > admin invites the user on the private video/videos on youtube

As you can see, it's not so automatic.

My problem is that the site is hosted on a shared account so I can't use a video-upload script due to limitations.

I've been searching high and low but can't seem to find a cheap solution to this.

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Just a thought, if you wan't to earn money, you'll probably need to spend money. If you have limitations, buy yourself out of them. Hosting isn't that expensive. – Repox Feb 22 at 9:59
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What about oculu.com on the cheap side or brightcove.com on the high side?

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