You can now embedd HQ and HD video in WordPress by extending the attributes of the URL, WordPress also allows you to specify the width and height of the player.
Above is a HD video and the wordpress syntax used was
youtube=http://www.youtube.com/watch?v=dPqcBitvscY&w=480&h=295&fmt=22
Note that the height should be set to 295 and not 270, as the YouTube control and progress bar is 25px high.
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