Well I was using the new You Tube app (from Google I believe) and the clarity on the video is very poor. It is cool and very user friendly, but poor video play back quality has led me back to youtube play. The videos on youtube play are much clearer but it is way more quirky than the other.
I just downloaded the Sky Fire Web Browser last night and it allows my device to play You Tube or any other flash playing site I've tried so far perfectly, just by going to the site. I may just scrap youtube play again. I like the looks of Internet Explorer better than Sky Fire, but SF is pretty cool so far (still new to it).
I would suggest giving Sky Fire a shot.