I was facing same problem with my installation. You need Unfiltered MU Plugin… this will solve your problem.
Thread Starter
punio4
(@punio4)
Do you have any idea why that happens?
I am also having this same issue, and would love to find a resolution. Someone please help
I just realized I am having the same problem. The YouTube URL is on it’s own line and is showing as plain text when I view the post.
Moderator
James Huff
(@macmanx)
Volunteer Moderator
OEmbed is a relatively new protocol at YouTube, and not all videos work with it yet. For now, use either manual embed code provided by YouTube or this plugin:
http://wordpress.org/extend/plugins/vipers-video-quicktags/
Ha. I just got done reading this other topic that you posted on. 🙂
http://wordpress.org/support/topic/auto-embeded-youtube-video-shows-only-the-link
Thanks for the solution!