I'm using Smart YouTube 3.7.1 I also use SourcedFrom plugin so that all the blogs on my multisite setup can publish posts from the library to their own blogs. SourcedFrom relies on the feed from the main site to populate the library. So, I thought Smart YouTube would allow embedded YT videos to come through when people republished from the library to their blogs. Nope.
Best I can get it to do is to include a link and an image when it is republished.
I've looked at the feeds directly and the videos don't embed there either, so it is something breaking down on the main site to rss end.