I don't know that there are too many 'rules'. Youtube provides the code with every video to embed it on any webpage
Yes, I don't think there are any restrictions. You can place the video on your sites as long as you do not modify them (remove/add credits, etc).
Well they have an embed code, so I assume it's there for people to use it. I think it's a good plan to link to the video though, just to keep youtube happy.
there's no restrictions of using embeding the video, only you must credit the owner of the video if you wish to embed it to your website
youtube videos are fun! they are free, and funny - the only thing is that you need to keep their credits. i dont think there are any restrictions :> just dont modify the script.
I don't think a link is needed as the whole video acts as a link anyway. If you click on the video it plays and if you click on it straight away again it will open up the Youtube website in a new window. What about resizing the videos so that it fits into your site content better. That is not really tampering with the functions and link of the video, it is just resizing it, so I think that should also be alright. Any thoughts on resizing as that is something that some of us may need to do.
There are no rules that I'm aware of. Its a great thing to use because then you don't have to worry about the videos eating up your bandwidth -- let google worry about that.
I don't think there are any restrictions other than don't change the code because with every video you place on you site youtube gets free advertising, so it benefits them too.