I generally have the same issue with my iPad when using the YouTube app. The odd thing is that I can watch a Netflix video and not experience the same problem. Netflix locks up on me occasionally, and throws me back to the Home screen, but I have all but given up on YouTube.
In case this applies to others with similar issues, I seem to have "slow" wireless with the iPad at home, but have not experienced any connection drops--thankfully. I have a newly refurbished Airport Extreme on RoadRunner. I haven't taken the iPad out any field trips yet as I was terrified I would be the idiot to drop it on the floor at Panera. "And tonight on the News at Nine, a local a woman commits sucide with a plastic knife after dropping her iPad at a downtown cafe; we hope to bring you video at 11:00, so please tune in for the latest on this tragic story."
I received the Belkin Grip Pad yesterday and feel much better about life in general now...