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Not all videos have been re-encoded to h.264 yet, it will take a couple more months for the whole library to be available.
 
cool thanks for the info, did you tube say though the whole library will?
 
do you know how this works with the new videos that are being added daily? are new videos automatically encoded or do they have to go through some sort of process? saw a great old school amy winehouse video on perez hilton just now but it won't play on iphone :(
 
Thanks for the info; I was wondering this as well. I was disappointed when I searched for some favorite videos on my iPhone and they didn't show up.
 
I'll be shocked if they can manage it in a couple of months. Their entire video library is extremely massive, and encoding video to another format is probably one of the most cpu intensive activities.
 
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