On the issue of video quality - I watched on 480 and noticed no irregularity saw few inconsistent glitches at 0:23-0:28 mark. Glitches are on the parts with maximum movement and inconsistent - probably some YouTube coding/flash thing.
However, for some time (month or so) I have such problem with any YouTube videos - on the first try, video either does not upload, does not play, loses few of resolution options (resolution selection goes blank), plays few seconds with no sound, then distorts the image and goes to blank CRT like screen with "An error occurred, please try again later. Learn More". On second try, video plays nicely with no weird effects.
I guess it has something to do with YouTube being too clever with checking available bandwidth and failing at that horribly.