Start Firefox in Safe Mode to check if one of the extensions (Firefox/Tools > Add-ons > Extensions) or if hardware acceleration is causing the problem (switch to the DEFAULT theme: Firefox/Tools > Add-ons > Appearance).

To Enable SafeMode

• You can open Firefox 4.0+ in Safe Mode by holding the Shift key when you open the Firefox desktop or Start menu shortcut.
• Or open the Help menu and click on the Restart with Add-ons Disabled... menu item while Firefox is running.
• Once you get the pop-up, just select "'Start in Safe Mode"

If it works in Safe Mode and in normal mode with all extensions (Tools > Add-ons > Extensions) disabled then try to find which extension is causing it by enabling one extension at a time until the problem reappears.

Close and restart Firefox after each change via "Firefox > Exit" (Windows: Firefox/File > Exit; Mac: "Firefox > Quit Firefox"; Linux: "Firefox/File > Quit")

• https://support.mozilla.org/en-US/kb/troubleshoot-firefox-issues-using-safe-mode
• https://support.mozilla.org/kb/Safe+Mode
• https://support.mozilla.org/kb/Troubleshooting+extensions+and+themes

This problem is not isolated to Firefox. Many YouTube users are experiencing the same trouble using different browsers. I'm still looking for a fix.

Okay, after further research I have found a fix. I had to disable hardware acceleration in Flash player. Very simple to do at the Adobe Flash Player website. http://helpx.adobe.com/flash-player/kb/video-playback-issues.html#main_Solve_video_playback_issues Follow the instructions in the section labelled "Solve Video Playback Issues"

Good luck