Not all Youtube vids have HD. But i'm guessing your trying to watch one where you know for a fact that it does have HD.
And yeah, the memory errors i get when browsing ***** the S*** out of me I mean come-on, it's a ps3 for heavens sake! it should be able to make you coffee aswell and it's telling me i have low memory!
Check out: "ps3youtube.com" in your PS3's Internet Browser.
Remember: This website is made especially for the ps3 so it only works as intended on the ps3...on the pc links will be redirected to YouTube
Give it a couple of days and they'll nobble the website (again!) to cripple it on the PS3 browser (again!).
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