same thing happening here ... says "cannot connect to youtube" each and every time is fire up the app ... funny thing is that once in awhile i can see a youtube vid via another app (such as facebook) ... still, it's for intensive purposes, no longer functioning ... wish there was some way to fix this despite this phone no longer being supported ...
I have the same problem. The only way I can watch YouTube videos is through Safari at m.youtube.com, but the app was much easier to access and functional. Can't wait for iPhone 4 to arrive in my country as this old phone is becoming more and more useless.
Exact same problem started on my iPhone a few weeks ago.
For a few weeks now I've been having to use m.youtube.com (set as a weblink sitting where the actual app sat) which isn't as pleasant as using the actual app.
Yes, the site has been improved for use on the iPhone but I'd still much rather use the apps and get back to those good old features to use on a daily basis.
Somebody PLEASE find a fix as I can't take this much longer.