Yep. The software is pretty horrible and the interface is pretty clunky. The video is cut off on some edges on the 700wx. Most icons don't work on the interface so you gotta get used to where to press on the screen to get things done. But it does work!
Use
www.mobetube.com to browse youtube for videos or use Kinoma's built in media guide to browse top rated clips. Paste in the address of the streaming link. btw, don't ask where I got Kinoma, just know that a patched version was required. This post is informational only to steer you in the right direction, if you must go there
It's only a matter of time until we have a good solution for watching streaming youtube without conversion on the Windows Mobile platform, but for now Palm OS has the advantage and this (i think) is the only way to do it in PPC.