What about in terms of a release form of footage that shows people's faces. Can't people sue you if you didn't get permission to use them in a video? I would think that would be a big problem when shooting in a large public area say a busy New York street. But then again, I don't know thats why I am asking...

Sorry to jump off track but I think it can be justified that the motion picture industry started in New Jersey. http://en.wikipedia.org/wiki/Edison%27s_Black_Maria

Exactly the question I've been thinking.
Just finished filming a state surfing championship in a public area. Turns out the footage looks pretty good, and I'm thinking short film for the local TV station. I should probably call the event organizers for advice.

Only a lawyer could say for sure about any specific situation. It depends on the nature of the event. For news coverage the rules are very lenient. Theatrical and broadcast drama - everyone you seen on screen in addition to the principle characters in a show like CSI is usually an extra placed intentionally on the set, casual passers-by aren't usually in the shot except perhaps in the extreme distance. Documentaries straddle the fence.