youtube player is now updated to v2.0.4 and it works with feature pack 1 and Feature Pack 2 devices
Features of Youtube Mobile Client v2.0.4
Browsing millions of videos including most viewed, most discussed, top rated, and the day’s featured videos.
Log in to your YouTube account on your phone and access your Favorites, Playlists, and your own uploaded videos
Favorite, share, rate, and discuss on videos directly from the mobile website.
you can download here: click here