The code you're using from Eric Bidelman chops up a video that the browser already fully downloaded to demonstrate how the api works. In reality, you'd slice
the video on the server, and the client would download each chunk in order, probably with an AJAX request.
I'd first suggest you try your .mp4 in the demo code you have, because MediaSource seems pretty picky about the format of the video files it accepts. See Steven Robertson's answer about how to create an mp4 that'll work.
Then it's up to you whether you want to slice the video manually beforehand, or do it dynamically on the server (which will vary depending on your server). The javascript client shouldn't care how many or how large each chunk each is, as long as they're fed in order (and I think the spec even allows some amount of out-of-order appending).