Ok, I think I may have identified where my problem is.......I downloaded one of the videos from YouTube in flv format and uploaded it directly to my website - this now repeats perfectly:
1 - yes the flashplayer works with youtube video and repeat, it seems to be an issue under chrome and youtube and specific other flashvars configurationn this will be resolved.
2 - Longtail tell me if you could try the last version of the player (svn repository)