I've been considering selling video-packs on my website. I was about to set up google check-out account but decided to put myself on pause until I researched the legal aspect of selling x-rated video of myself on my escort site. Thus far, the videos are self-shot so they don't imply anything illegal. Still, I wonder if I should host the video packs from a sister site just in case Google or some other power-that-be creates a legal issue or worse – that someone might orchestrate a public scathing. I'd love to hear the opinions of those who might know.

I don't think you are soft ground but I agree you should not get yourself enamored with how you might profit from this endeavor and set something up that have the potential to bring you real income. Besides, you might catch the cinematic bug and for some higher quality video in the future. One thing I would do is to set up a corp. S or C for example so you can distance your real name from the sale of said videos (at least a bit). The extra expense may appear to be unwarranted, but this is the way most people who don't want have 'attached' to certain things do it. Unless you haven't been up on tax laws, individual ownership is taxed at the highest rates.

Consider using CCBill, or another corporation that processes credit cards for porn companies.

I think worst thing could happen is Google booting your account if they see there's adult content.  You'd have to read the fine print and see their policy.

If you are a primary or secondary producer of sexually explicit content, you have to keep records, and comply, and so specify on your website. Secondary producers are (1) those who use such images for "assembling, manufacturing, publishing, duplicating,reproducing, or reissuing" any material containing regulated images, 18 U.S.C.  2257(h)(2)(A)(ii), and (2) those who upload such images to a website or otherwise manage the content of the website, id.  2257(h)(2)(A)(iii).

I definitely don't plan on getting rich with my little videos. It's just an experiment I want to exercise. As long as I earn enough to cover the increased bandwidth charges I feel like it's worth the invested time.

Thanks for the feedback!