I'm still trying to work out how it happened. Youtube now seems to be showing be 240p 360p 720p and 1080p.
obviously 1080p only gives sound not video, videos is like 0.5fps
720p is like 1fps
480p is quite gittery. 4fps
360p runs silky smooth. (amazing quality) tested and only works when the phone is running @ 1.15ghz
240p works @ any speed and the quality is sh*t

from the last two screenshots, you can see the difference in quality! one is 240p and the other is 360p
and it's working in normal maemo browser

edit: don't know why it's showing the screenshots of diffferent sizes?