If you want something easier to install, you can also install a nightly build of VLC from here:
http://nightlies.videolan.org. But note it is theoretically less stable, since it is not a release (although there should be no problem for simple tasks).
Also note that I was not suggesting something too complicated. If you want a simpler explanation:
- go to C:\Program Files\VideoLAN\VLC\lua\playlist (or C:\Program Files (x86)\VideoLAN\VLC\lua\playlist if you have the 32 bits version) and delete the file youtube.luac present in that folder
- go to this address:
http://git.videolan.org/?p=vlc.git;a=tr ... st;hb=HEAD and download the file named youtube.lua (right click on it and select "save link as"); place it in the same directory as above.
And that's all, youtube should work again!
Now, as said in my previous post, it solves maybe only part of your problem. But I do not consider this as too complicated.