This is the topic for the oEmbed extension.
With this extension you can easily embed videos and images from several sites.
Get the extension here: http://extensions.pivotx.net/?e=5
You don't happen to use the NoScript extension for Firefox (or something similar)?
You need to allow http://oohembed.com/
I guess Pivotx 2.1.0 b3 cannot be 'too old', since the latest stable release is 2.0.2?
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