I am having the same issue as mentioned in this post (http://social.microsoft.com/Forums/en-US/writergeneral/thread/eb0d8fb7-254d-481b-a4a3-c58e593b549c).
When inserting a video from Soapbox or Youtube, the video only shows up as an image on the post that links to the respective video page on MSN or Youtube.
I have tried the solution in that article, but no luck, any video from either Soapbox or Youtube, only show up as an image, or not at all if scripts are set to not supported.
Anyone able to use WLW to publish embeded videos to a MOSS blog?
Shon