Look at the first image. To the right you will see the URL link for sending the link to people in emails. Directly under that is the "embed" code which you paste into your post. YouTube has recently added a neat little tool (GUI) for you to select size and the color of the frame around the vid screen. Notice to the right of the embed code area that I have circled, there is a little blue cog wheel icon? Click that and the options for size and color will appear as in the second image here. After you select the color and size, go back to the embed window, left click on the code, select all (ctrl+a) copy it (ctrl+c) then paste it into your blog post (ctrl+v).
Note: While in compose mode in your blog post, you will not see the embedded code...cuz it's embedded...so I recommend typing in edit html mode.

That answers your question, but let me expand upon that info. Default settings do not give you a "wrap around" text effect. To get the thing to blend in with your text nicely when you post a vid link within your text, you will need to add some code. If you are in edit html mode, that will be easy enough. Your embedded text will look like this:<object width="425" height="264"> <param name="movie" value="http://www.youtube.com/v/YUmUUV0SSwA&hl=en&fs=1&rel=0&color1=0xe1600f &color2=0xfebd01"> </param> <param name="allowscriptaccess" value="always"></param>
<embed src="http://www.youtube.com/v/YUmUUV0SSwA&hl=en&fs=1&rel=0&color1=0xe1600f& color2=0xfebd01" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="264"></embed> </object>
Notice I put "true" and width in bold text. In your code, add this bit between "true" and width to make your text wrap around your YouTube video link.
style="margin: 5pt 10px 5px 5pt; float: right;"Don't leave out the quotes. Float: right to put your vid image on the right of your post, or float: left to get it on the left side. When finished your code will look like this:
<object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/fHtAkM3CYLA&hl=en&fs=1&rel=0&color1=0xe1600f& color2=0xfebd01"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube.com/v/fHtAkM3CYLA&hl=en&fs=1&rel=0&color1=0xe1600f& color2=0xfebd01" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" style="margin: 5pt 10px 5px 5pt; float: right;" width="320" height="265"></embed></object>




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