I did some experimentation. If you are in Wi-fi browsing mode, it works. If you are on 3G, an option kicks in that may prevent Youtube from working. Under Browser Options, select "General Properties". An option called: "Switching to WAP for streaming media" may be on. Un-check it and try. This works for all browser modes.
Side note that may save you some grief: You can't change the browser mode (ie. Hotspot Browser to Internet Browser) in the Browser Configuration menu within the browser application. If you switch between the browser types, you can adjust the settings for each but that's it. Your default browser is still the default browser. You have to change the default browser in the main Options application (the wrench) under Advanced Options, Browser.
Hope this helps,
Santo
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