[Acer Iconia A500] galapogos01:
So, it's not just youtube. It's anything that tries to use the hardware accelerated h264 codec. MX Video Player in software mode works fine.

There seems to be some issue starting the OMX Codec HW Accel.

Working Logcat

I/ActivityManager( 135): Displayed com.google.android.youtube/.app.tablet.WatchActivity: +798ms
D/dalvikvm( 1900): GC_CONCURRENT freed 693K, 6% free 21444K/22599K, paused 4ms+4ms
D/YouTube ( 1900): youtube.app.suggest.HistoryDb.query:88 History query returning 0 rows
D/MediaPlayer( 1900): Couldn't open file on client side, trying server side
I/AwesomePlayer( 85): reset
I/AwesomePlayer( 85): cancel player events
I/AwesomePlayer( 85): cancel player events
I/AwesomePlayer( 85): setDataSource_l('http://redirector.c.youtube.com/videoplayback?id=8561f3eee9e535f1&itag=18&source=youtube&uaopt=no-save&el=standard&devKey=ATpxuMO4AN5NR1nGmfaQDBQO88HsQjpE1a8d1GxQnGDm&app=youtube_gdata&ip=0.0.0.0&ipbits=0&expire=1331604646&sparams=id,itag,source,uaopt,ip,ipbits,expire&signature=B58929DFA39322596AF1A07415918502DA795904.ED0E6738CA5428F3A54AD3177B048BF08CE585EF&key=yta1&androidcid=mvapp-android-acer')
D/HAL ( 85): [HAL] hw_get_module:share library path:/system/lib/hw/gralloc.tegra.so
I/NuHTTPDataSource( 85): connect to redirector.c.youtube.com:80/videoplayback?id=8561f3eee9e535f1&itag=18&source=youtube&uaopt=no-save&el=standard&devKey=ATpxuMO4AN5NR1nGmfaQDBQO88HsQjpE1a8d1GxQnGDm&app=youtube_gdata&ip=0.0.0.0&ipbits=0&expire=1331604646&sparams=id,itag,source,uaopt,ip,ipbits,expire&signature=B58929DFA39322596AF1A07415918502DA795904.ED0E6738CA5428F3A54AD3177B048BF08CE585EF&key=yta1&androidcid=mvapp-android-acer @0
I/NuHTTPDataSource( 85): connect to o-o.preferred.eftel-mel1.v11.lscache1.c.youtube.com:80/videoplayback?id=8561f3eee9e535f1&itag=18&source=youtube&uaopt=no-save&el=standard&devKey=ATpxuMO4AN5NR1nGmfaQDBQO88HsQjpE1a8d1GxQnGDm&app=youtube_gdata&ip=0.0.0.0&ipbits=0&expire=1331604646&sparams=id,itag,source,uaopt,ip,ipbits,expire&signature=B58929DFA39322596AF1A07415918502DA795904.ED0E6738CA5428F3A54AD3177B048BF08CE585EF&key=yta1&androidcid=mvapp-android-acer&cms_redirect=yes @0
I/OMXCodec( 85): [OMX.Nvidia.h264.decode] AVC profile = 66 (Baseline), level = 30
I/OMXCodec( 85): [OMX.Nvidia.h264.decode] allocating 10 buffers of size 1566720 on input port
I/OMXCodec( 85): [OMX.Nvidia.h264.decode] allocating 10 buffers from a native window of size 345600 on output port
I/nvos_linux_stub( 85): stub_helper: alloc iovmm

I/nvos_linux_stub( 85): stub_helper: alloc carveout_iram

I/nvos_linux_stub( 85): NvMMVideoDecoderH264SetAttribute@797: info=2147483647 DeintType = 2147483647, DeintRate = 2

D/dalvikvm( 907): GC_EXPLICIT freed 145K, 11% free 7049K/7879K, paused 6ms+3ms
D/YouTube ( 1900): youtube.core.player.Tracker.ping:230 Pinging http://video.google.com/s?docid=hWHz7unlNfE&ns=yt&len=11179&el=detailpage&ps=android&rt=6.3&playback=1&plid=cZUZxWkh6DOztSor%0A&av=3203_13&fmt=18
I/AudioService( 135): setCurrentMediaType 2
I/AudioService( 135): setDolbyDefaultEq, MusicEq = 0 , VideoEq = 0
I/AudioService( 135): Current audio device output is Speaker. MediaType=2
I/AudioService( 135): SetNaturalBassOn true
I/AudioService( 135): SetHighFreqEnhancerDepth 0
I/AudioService( 135): SetNaturalBassDepth 0
I/AudioService( 135): setEqSpeaker mediaType= 2, mode= 0
I/nvos_linux_stub( 85): Allocating new output: 640x368 (x 9)

I/OMXCodec( 85): [OMX.Nvidia.h264.decode] allocating 11 buffers from a native window of size 353280 on output port
I/nvos_linux_stub( 85): stub_helper: alloc iovmm

Non-Working Logcat

I/ActivityManager( 134): Displayed com.google.android.youtube/.app.tablet.WatchActivity: +719ms
D/YouTube ( 3089): youtube.app.suggest.HistoryDb.query:88 History query returning 0 rows
D/MediaPlayer( 3089): Couldn't open file on client side, trying server side
I/AwesomePlayer( 85): reset
I/AwesomePlayer( 85): cancel player events
I/AwesomePlayer( 85): cancel player events
I/AwesomePlayer( 85): setDataSource_l('http://redirector.c.youtube.com/videoplayback?id=8561f3eee9e535f1&itag=18&source=youtube&uaopt=no-save&el=standard&devKey=ATpxuMO4AN5NR1nGmfaQDBQO88HsQjpE1a8d1GxQnGDm&app=youtube_gdata&ip=0.0.0.0&ipbits=0&expire=1331604646&sparams=id,itag,source,uaopt,ip,ipbits,expire&signature=B58929DFA39322596AF1A07415918502DA795904.ED0E6738CA5428F3A54AD3177B048BF08CE585EF&key=yta1&androidcid=mvapp-android-acer')
I/NuHTTPDataSource( 85): connect to redirector.c.youtube.com:80/videoplayback?id=8561f3eee9e535f1&itag=18&source=youtube&uaopt=no-save&el=standard&devKey=ATpxuMO4AN5NR1nGmfaQDBQO88HsQjpE1a8d1GxQnGDm&app=youtube_gdata&ip=0.0.0.0&ipbits=0&expire=1331604646&sparams=id,itag,source,uaopt,ip,ipbits,expire&signature=B58929DFA39322596AF1A07415918502DA795904.ED0E6738CA5428F3A54AD3177B048BF08CE585EF&key=yta1&androidcid=mvapp-android-acer @0
I/NuHTTPDataSource( 85): connect to o-o.preferred.eftel-mel1.v11.lscache1.c.youtube.com:80/videoplayback?id=8561f3eee9e535f1&itag=18&source=youtube&uaopt=no-save&el=standard&devKey=ATpxuMO4AN5NR1nGmfaQDBQO88HsQjpE1a8d1GxQnGDm&app=youtube_gdata&ip=0.0.0.0&ipbits=0&expire=1331604646&sparams=id,itag,source,uaopt,ip,ipbits,expire&signature=B58929DFA39322596AF1A07415918502DA795904.ED0E6738CA5428F3A54AD3177B048BF08CE585EF&key=yta1&androidcid=mvapp-android-acer&cms_redirect=yes @0
D/dalvikvm( 3089): GC_CONCURRENT freed 5906K, 32% free 16291K/23623K, paused 3ms+6ms
I/dalvikvm( 3089): Jit: resizing JitTable from 4096 to 8192
D/dalvikvm( 3089): GC_CONCURRENT freed 1073K, 27% free 17265K/23623K, paused 3ms+5ms
D/dalvikvm( 3089): GC_CONCURRENT freed 849K, 22% free 18463K/23623K, paused 3ms+7ms
I/OMXCodec( 85): [OMX.Nvidia.h264.decode] AVC profile = 66 (Baseline), level = 30
I/OMXCodec( 85): [OMX.Nvidia.h264.decode] allocating 10 buffers of size 1566720 on input port
I/OMXCodec( 85): [OMX.Nvidia.h264.decode] allocating 10 buffers from a native window of size 345600 on output port
I/NuCachedSource2( 85): Keep alive
D/dalvikvm( 2775): GC_EXPLICIT freed 30K, 12% free 14408K/16199K, paused 3ms+37ms
I/ActivityManager( 134): Starting: Intent { cmp=com.google.android.youtube/.app.tablet.WatchActivity (has extras) } from pid 3089
W/Resources( 3089): Converting to string: TypedValue{t=0x12/d=0x0 a=2 r=0x7f08006a}
E/TelephonyManager( 3089): Hidden constructor called more than once per process!
E/TelephonyManager( 3089): Original: com.google.android.youtube, new: com.google.android.youtube
I/AudioService( 134): AudioFocus requestAudioFocus() from android.media.AudioManager@40c8e6f8
D/YouTube ( 3089): youtube.core.async.UserAuthorizer$AuthTokenCallback.run:390 got authToken for galapogos01@gmail.com
I/AudioService( 134): setCurrentMediaType 0
I/AudioService( 134): setDolbyDefaultEq, MusicEq = 0 , VideoEq = 0
I/AudioService( 134): Current audio device output is Speaker. MediaType=0
I/AudioService( 134): SetNaturalBassOn true
I/AudioService( 134): SetHighFreqEnhancerDepth 0
I/AudioService( 134): SetNaturalBassDepth 0
I/AudioService( 134): setEqSpeaker mediaType= 2, mode= 0
I/AwesomePlayer( 85): reset

Can anyone provide a logcat for playing a YouTube video on 3.2.1? Just from the activity creation including any OMX Codec / nvos* entries.