I was excited back when AdSense video units rolled out in 2007, and had great expectations for the new ad option.
Truth be told, I never managed to make much money with it, and I guess I wasn’t alone, because the Google AdSense Blog announced today that they’re closing down AdSense video units at the end of April.
If you’d still like to display video content from YouTube, you can do so through YouTube.com directly. Visit any specific video page and look for the code in the ‘Embed’ box, or sign in to your YouTube account to create a playlist. In addition, please note that this change won’t affect the availability of other video-related ads options — video ads may appear in your AdSense for content ad units if you’ve opted into image ads, and AdSense for video is still accepting applications from eligible publishers who produce video content.
Starting today, the option to sign up for video units is no longer available to new publishers. If you’re currently displaying video units, we recommend that you start removing the video unit code from your pages as soon as possible so you can optimize your available ad space in advance. Please be assured that any earnings you’ve generated from video units in the past will still be credited to your AdSense account.
On a side note, you’re welcome to embed videos from my YouTube account. And while I won’t pay you in cash, I will issue you a bunch of good karma.
More details at http://adsense.blogspot.com/2009/03/sunsetting-video-units-feature.html.

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