Issue with Embedding YouTube video as Web Object

I had done some trials of embedding YouTube video as a web object a month ago and it worked. Today if I try to repackage the same file, it no longer works - just get a white box when I try to play the story.html.  Same with any YouTube video.

This may be a stupid question, but has YouTube changed anything? Anyone else having problems packaging files with YouTube as a web object?  (I am in SL2)

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