I agree. This is more than likely a google issue. They have, in the past, rolled out changes and new tech before everything is perfected for all applications. This could be caused by a number of different things.
I was connected directly with the modem at lunch today and youtube service was intermittent. I would get the "An error has occurred. Please try again later." issue but after a couple refreshes it would come through alright.
So I guess this thread should be closed. A new thread should be started with google and then maybe with enough squaking we'll get noticed.
I would suggest you guys get on the google products thread I posted to earlier and blow it up. This isn't really the correct platform for this problem.