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I've added a bit of code, to make embedding video a lot easier. No having to work out those pesky BBCODES any longer. Just paste the full URL of the video. Should work on more sites than just YouTube as well. I've enabled quite a few of the "popular" sites e.g. vimeo, spotify, Twitter etc.
So just paste the URL and it should work. If it still doesn't - looks like the default style isn't 100% happy for some reason - then use the bbcodes [media] and [/media] around the URL. You can either type those in, or click the odd-looking square button at the top of the edit box, which has the tooltip "Media Embed...". I'll work out what needs to change in the default style to get it to work without it.