Embedding YouTube in Blank Project Doesn't Work

I've spent the last 4 hours reading everything about embedding YouTube, updating the YouTube Widget, how much YouTube hates Flash and trying ALL the suggestions. My problem is a blank object.

SO, I tried embedding a web object (like Paul Wilson) suggested into a blank project. That doesn't work (although I've used that method for responsible projects and it works). I've tried various widgets and those don't work. I end up with a wonderful message from YouTube stating that they don't support Flash, BUT I can still view it in their environment. In all instances I put the files up on a web server (another suggestion) and still no luck. I also thought my cptx file was possibly corrupted so I cleared cache, restarted my computer, and made a new file--that didn't produce any change.

I did find that the blank project makes a folder "wor", with a sub-folder "wo" and some numbers (i.e. wo_5272), and then another html file inside it that when clicked the video works as intended.

My customer really wants the swf version--they can place the one swf anywhere in their environment, so going responsible won't work either.

Any ideas? Thanks!