Valid for Moodle 2.8. Updated on 07/21/2015..Some times you want to direct students to a YouTube video but don’t want to take the space on your page for a media player interface. The way you solve this problem is to create a URL resource that uses the short form of the URL. There are several ways to find this form depending on what you have to work with.
If you go to youtube.com and find the video you want, clicking on the Share link will bring up the short form of the URL.
Alternately, if you have a URL in the form of http://www.youtube.com/watch?v=_ZSbC09qgLI convert it to the same short form by changing the server name to the short form and removing watch?v= to get http://youtu.be/_ZsbC09qgLI.
Once you have the short form, you can use it as the URL for a URL resource or use it to build a link in another text field.