Download the "Flash Video Player" Wordpress plugin: http://wordpress.org/extend/plugins/flash-video-player/
Active the plugin.
Enter the following short code wherever you would like the YouTube video to be displayed:
[flashvideo file=http://youtube.com/watch?v=pShf2VuAu_Q /]
There are many options for the player itself including the ability to hide the controls, autoplay, etc...