I'm pretty sure these are easy template edits in the template
bbcode_video...
I imagine they'll be updated on new versions of vBulletin eventually, I'm pretty sure I saw info on upgrading the YouTube player on vbulletin.com already, probably somewhere here too if you search for it.
To update to YouTube HTML 5 in vbullrtin 4.x edit the template bbcode_video...
Save a copy first in case this doesn't work.
Find:
Code:
<vb:elseif condition="$provider == 'youtube'" />
<object class="restrain" type="application/x-shockwave-flash" width="640" height="385" data="http://www.youtube.com/v/{vb:raw code}">
<param name="movie" value="http://www.youtube.com/v/{vb:raw code}" />
<param name="wmode" value="transparent" />
<!--[if IE 6]>
<embed width="640" height="385" type="application/x-shockwave-flash" src="http://www.youtube.com/v/{vb:raw code}" />
<![endif]--></object>
Replace with:
Code:
<vb:elseif condition="$provider == 'youtube'" />
<iframe title="YouTube video player" width="640" height="385" src="http://www.youtube.com/embed/{vb:raw code}" frameborder="0" allowfullscreen></iframe>
Save the template and you should be set.
Edit- Just tested, yes it works.