This was just tweeted by BudTheTeacher (http://budtheteacher.typepad.com/ ). http://mashable.com/2008/07/03/youtube-viacom-users/ with another review of the ruling here: http://www.eff.org/deeplinks/2008/07/court-ruling-will-expose-viewing-habits-youtube-us
Bottom line - YIKES!!! You'd better be careful if you watch copyrighted videos on youtube, whether directly or embedded!
I agree with the comments of the author of the first article in that SOMEONE should make sure that the judge who decides such things MUST know what an IP address is. If you do not, then you should NOT rule. The old expression comes to mind, "If you judge, investigate."
Oh my...
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