The YouTube mashup makes it easy to embed a YouTube video from within your course, but what if the video is hosted elsewhere?
You can easily embed it in an Item. From any content area, click Build Content and select Item. Enter HTML mode by clicking on the HTML button on the Content Editor.
Copy the embed code into your clipboard, and paste it in the box. Click submit to save.
Note: You may need to enable the advanced features (rows 2 and 3 of icons) in the Content Editor to see the HTML button. Click the double chevron to show/hide those features.