This post only applies to PowerPoint 2010, as the Insert Video from Website option is no longer available in PowerPoint 2013. Click here for a link to a good, and extremely complicated, to add that functionality back into 2013.
I thought I had the put-a-YouTube-video-into-PowerPoint thing down with my blog PowerPoint and YouTube – Automatically Starting the Video. Then Microsoft did one of its updates. Suddenly everyone began getting this message:
Now, using the Old Embed Code, paste the code into the PowerPoint, but before you click ok you need to remove the two items related to Version 3 (see highlighted example). Make sure you delete from everything from semi-colon to semi-colon.
It may take a few seconds. Stretch it out to the size you want, then double click the big black rectangle to play. And enjoy the music.