Did you ever figure this out? I am having the same issue.
Could you please tell me how you got this to work? I am having the same issue.
I too am having the same problem as freelance08. When using the [embed] shortcode or alternatively removing the <p> tag YouTube url’s do not work. I have the same errors as freelance08 in that when using [embed] the widget is blank and when removing the <p> tag you just see the URL.
