I am having the same problem! Two HTC Hero 2.1 and one HTC Wildfire 2.1 @ 3 UK network are affected. The error I am getting is "there was a problem while playing" when I am trying to play new videos (week or so old) but those uploaded earlier and some very short videos are playing fine. I tried to clear YouTube app cache and data but it didn't help. However videos can be played over 3G at lowest quality by default but as soon as I switch to HQ I get the same message "there was a problem while playing".
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