i was talking to my friend about this ,i think its not allowed to build a website that have the youtube videos grabbed using any script and use adsense on it am i wrong ?
Adsense just updated their polices to include wording along the lines of "if your website violates any other google service terms/polices, then you can't use adsense". So if your site violates the Youtube terms, you are also violating the Adsense TOS. Of course to know for sure, you will have to take a few minutes and read the Polices and TOS yourself.