Embedding Youtube video
Design and Skin Customization
I have just tested here and don't see any problems. Here's how you do it:
1) Create a NEW YouTube video on a profile (go to the YouTube section for a profile and click the + button)
2) Click on "Blog" for the profile and create a NEW blog entry
3) in the editor click on the "Embed Local Media" button
4) in the Embed Local Media overlay, click on the "YouTube" tab and select the YouTube video from step 1.
5) save your blog entry
The YouTube video will now be embedded.