I created an unlisted video on YouTube: http://www.youtube.com/watch?v=JxZjH2Lfd1A
I placed this link in a post, but when I publish the post, it just displays the link, not the embedded video.
If I change the video to "Public" and republish the post, the embedded video shows up just fine.
If I change the video back to "Unlisted" and republish the post, the video goes back to being a link.
I think this is a bug -- or is there a way to fix this or work around it?