The easiest way would be to create an adjustment layer. Mask you and your buddy out. Apply a blur filter (or mosiac) to the adjustment layer. Feather the mask if you need soft edges.
So if I can't find out a way to get me and him off of the video clip I'm threatened with expulsion, no joke. So if there are any of you tech/video editing pros out there if you could try to work at it or tell me how to work on it, it would be greatly appreciated.
Sorry, dude, you're hosed.
The folks here have given you all the good advice necessary to get the job done. But if you think you'll be able to remove the original video from YouTube, I think you'll find it's even tougher than placating irate parents.
Besides, you were right behind those three kids! How could you have NOT known you were on camera?