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If you use Firefox, get netvideohunter. Available as an extension/add-on. Not only works Youtube but everywhere (Vimeo etc)
Been using it since it came out, and never an issue. You can download as many videos as you like - it automatically detects video streams (including advert flv, so look at the file name it gives first)
While at it get Adblock for Youtube - removes those annoying pre-video advertising videos.
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