Hey Slees,
Turn off rich text editing under: users>your profile. I just got mine to run. Check it out…
http://www.badassbikersindy.org/blog/
I am having the same problem. Tried several diferent video hosts. Settled on VideoEgg. It showed up in the editor window the first time I put in the code then lost it on the save.
Here is the video post if anyone wants to check out my handy work.
http://www.badassbikersindy.org/blog/