Use the Media panel in InDesign (Window / Interactive / media) to set a url for your video, do not paste any HTML as this will not work in PDF.
Oh and by the way: NOTHING that is in Overlays will work in PDF, Overlays are reserved for DPS.
This is for presentation of some sort, correct? You're designing it, but then you're handing it off to someone else to present and maybe even give to the audience members on a USB Flash drive?
Rather than try to get video (via a link to an online video or via video that's been placed in your document) working inside of your Interactive PDF (or Print PDF for that matter), I'd recommend manually converting your InDesign page layout to PowerPoint or Keynote and then adding the video to the pages that need it while working in those applications. I also recommend using a MP4 video stored locally with the resulting PPT or Keynote file (you may need to screen record the YouTube video if your client doesn't have an edited master video file that you can encode for use). And, of course, the presentation need to run from storage media that's fast enough to play the video.
If you really want to use YouTube video (or just have to), switch to Muse or Dreamweaver and publish to HTML where embedded HTML code is well supported. Then run the presentation in a web browser that supports Kiosk Mode.
I haven't played with InDesign's Publish Online preview yet, but there's some hope there for an easier workflow for including online video.
This cannot work. Youtube is not a media server, it offers packaged videos needing HTML to play. Your video needs to be on a specialist media server.
Further to what Frans is saying, it's very easy to accidentally use a feature in your InDesign document that is not supported by the format that you're exporting to (Print PDF, Interactive PDF, DPS Article, EPUB, Flash CS6 Professional, Flash Player, HTML, etc).
Although, you're not left high and dry to figure this out on your own.
If you set your Workspace to Interactive for PDF (Window > Workspace > Interactive for PDF), you'll see the panels for Page Transitions, Hyperlinks, Bookmarks, Button and Form, Media and SWF Preview in addition to the common panels for editing your document (Pages, Links, Layers, Color, Stroke, etc.). Stick to the features available in the panels that are shown in Interactive for PDF workspace. (In other words, when exporting to Interactive PDF, avoid the Overlays panel.)
Accordingly, if you're publishing to DPS (Digital Publishing Suite), set your workspace to Digital Publishing (Window > Workspace > Digital Publishing). You'll see the panels for Animation, Timing, Media, Object State, Buttons and Forms, Hyperlinks, Liquid Layout, Adobe Color Theme and (the star of this thread) Overlays.
And what good would the animation panel do you with DPS?
The fact is that it’s only easy to use the wrong the features if you fail to learn about all this before you get to work.
Maybe Adobe needs to remove it from the Digital Publishing workspace. But, that's a little of topic.
If you know what you’re doing it, it’s not an issue since Publish Online uses it.
You can also use it to create animation that can be converted to HTML via in5.
My point stands…this is not something you can just dive into no matter how many workspaces Adobe creates. These are professional tools created for professional purposes. I don’t know why so many people assume that because it’s software it requires no training.
I totally agree. It's still up to the user to know what can and cannot be used.