Here you have some great tips on how to embed videos from youtube on your website or blog and make them look and act the way you want it.

To embed a video, just copy the code from the "Embed" box—you can find it in the "About This Video" box when you're watching the video. Once you've copied the code, just paste it into your website or blog to embed it.
1. Embed Higher Quality Videos
While the above trick works for playback, if however you want to embed high quality videos you need to append “&ap=&fmt=18? and “&ap=&fmt=22? to the embed url.
2. Link to the interesting part
Linking to a video where the real action starts at 2 minutes 45 seconds, wondered if you could make it start at 02:45? All you have to do is add #t=03m22s (#t=XXmYYs for XX mins and YY seconds) to the end of the URL.
3. Hide the search box
The search box appears when you hover over an embedded video. To hide the search box add ‘&showsearch=0? to the embed url.
4. Embed only a part of Video
Just append ‘&start=30? to skip first 30s of the video. In general you can modify the value after start= to the number of seconds you want to skip the video for.
5. Autoplay an embedded video
You can make the video play automatically by adding ‘&autoplay=1? to the url part of the embed code.
6. Loop an embedded video
Append ‘&loop=1? to make the video start again without user intervention after it reaches the end.
7. Disable Related Videos
Just add ‘&rel=0? to the end of the url part of the embed code and you just turned off the related video option.