Download video from youtube
There is a freeware specifically designed to record video can generate high quality videos or Flash movies with efficiency. FLV Downloader is an easy-to-use free tool to help you download Flash videos (FLV) from the Internet including YouTube, Google Video, Myspace, Metacafe, Dailymotion, iFilm, Music, eVideoShare, StreetFire, etc. This program makes it possible for you to captured FLV files of all formats from the Internet accurately with the technology of auto-parsing URLs as well as the technology of multi-thread downloading. You can download multiple FLV files at one time or you can download one by one.
Download and Install FLV Downloader here
Steps
1.Open the downloader program.
2.The moment the window is opened, the following dialog box will pop, asking you whether to start recording or not.
When you click “Yes”, you will turn on the “Start Recording” function and the program will start monitoring the currently opened browsers for active FLV movies. If it detects any FLV movies, it will immediately download them to a default folder in your computer.
Here click “No” to turn off the monitoring function so that you can start record and download your favorite FLV files one by one manually.
Once ready, hover your mouse over the video that is playing and a small button will appear near your mouse, like the above image illustrates, asking you to select the option of downloading. Click on “Get FLV file” and then follow the instructions to download and store the FLV movie into a specified folder. Allows you to play it back again and again with another free tool named [FLV Player]
Tips
Step1 Load Video file Tips: in the Toolbar of FLV Downloader
Click the “New” button and the New Download Task dialog box will pop up to start importing the URL containing FLV files into Moyea FLV Downloader.
Click the “Start” button and the program will start to download the selected FLV files
Click the “Pause” button and you will stop the process of downloading the selected FLV file.
Click this button and you can delete the selected items from the File Field immediately below the Toolbar, either in the Downloading or in the Downloaded.
Click on the “Convert” button and you will see the pop-up of Moyea FLV to Video Converter to process the selected files in the Downloaded.
Click the “Settings” button and the Advanced Settings dialog box will pop up, asking you adjust the download parameters and connection parameters
Click the “hide” button this button and the system will help you to hide the Downloader in the system tray of the desktop.
There are extentions for Firefox that allows you to download any embedded media, not just movies from YouTube, but any video or song you come across.
source: wikihow

i used vdownloader or real media player plugin to download video. ;p
you can also try this add-on to IE - youtube downloader and converter at the same time
Looks like a pretty useful tool for the Ipod Generation, I wonder if this and youtube will have copyright issues. The only thing is you will need a FLV converter… Check out my site sometime, thanks.
there appeared lots of programs that also convert youtube flv to other formats. Check out this YouTube Downloader for one of such tools.