I've been experimenting a bit with this, and it seems that the job would be pretty straightforward, would anyone be interested in integrating youtube? The only problem would be that it would have to display videos through browser, since there is no player which can play macromedia....
So far I've managed to convert xml file youtube produces to xlobby database and make selected video play in xlobby web browser semi-automatically (whatever that means) combined with wget or some .NET method it should be easy to grab search results and display 'em as category inside xlobby...
D.