…won’t work as long as you’re using the rich editor (nope, it won’t work by using its “edit html source” function). Instead, from your dashboard, go to “Users” and disable rich editing at the bottom of that page. (via this forum entry.
The normal editor is more convenient anyways.

I didn’t have a specific video in mind when I was trying to figure out how to embed Youtube videos, but since it’s working now, enjoy “The Truth”:

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