[iBot]Youtube is crap, nothing new on it at all, certainly not worth the wait in letting my browser load it. If you want to kill 4 hours then go for it, but don't waste your bandwidth on it unless you really have nothing better to do.[/iBot]
In all seriousness though, even Windows Media Encoder 9 series will get that down to size (use the Pocket PC format), and the quality will certainly be watchable enough for youtube.
http://www.microsoft.com/windows/windowsmedia/forpros/encoder/default.mspx