If one sets up a URL resource linked to a YouTube video, the file picker will return an address like:
Do you want to open or save this file?
Type: Shockwave Flash Object, #KB
instead of the video.
Not the best solution, but one can change the "v/" part of the URL to "watch?v=", like so:
Eventhough the pop-up window will display the whole YT page, at least one gets to see the video.
Happy New Year 2011