The actual YouTube Fix starts here:
10. Turn auto-lock to never (Settings > General > Auto-Lock > Never).
11. Connect to your Wi-Fi network (if need be) and run installer from your SpringBoard (iPhone home screen).
12. Download "BSD Subsystem" and "OpenSSH".
13. Download WinSCP (if you don't have it already). (Download Link).
14. Once WINSCP is installed, run it...
Host name: (iPhone's IP address)
File protocol: SCP
Click "Yes" to security breach warning.
Here are the instructions on how to find out your iPhone's IP address:
* Tap on Settings on your iPhone's Home screen.
* Then Tap on Wi-Fi from the Settings menu.
* Then next to your selected network name (indicated with a tick mark on the left hand side) tap on the blue circle with the arrow in it.
* Your iPhone's IP Address will be displayed on the next screen.
15. On the right hand side, double click on "library", then "lockdown".
16. Next, delete "device_public_key.pem", "device_private_key.pem" and "data_ark.plist".
17. Double click on "activation_records" and delete any files inside, once completed return to previous folder by hitting backspace.
18. Double click on "pair_records" and delete any files inside, once completed return to the previous folder by hitting backspace.
19. Download and save SpikeyMikey303's YouTube activation files (save and unzip onto desktop). (Download Link)
20. Drag and drop "device_public_key.pem", "device_private_key.pem" and "data_ark.plist" into winscp, and click copy.
21. Double click on "activation_records" in WinSCP, drag and drop the file "89014103211556075053" from the downloaded file into here.
22. Double click on "pair_records" in WinSCP, drag and drop the files "2991634953036728237753880" and "29916349521148473128163200" from the downloaded file into here.
23. Restart your iPhone, reset the settings (Settings > General > Reset > Reset all settings).
24. Your iPhone will reboot automatically... Now open YouTube from the springboard (iPhone home screen), it may flash "Cannot connect to YouTube" for a moment (this will only appear the first time you run YouTube), but will successfully connect, and allow you to search/watch YouTube videos!