HTTP 500 issue about youtube-direct HOT 2 CLOSED

I was able to solve the issue by changing the preferences to jdk1.6.0.21 in the 
elcispe preferences click on window the prefences then Installed JREs if you 
don't see jdk1.6.0.21, then click search search your programs for java and if 
it's installed it will find the jdk1.6.0.21 file and add it to the instaled 
list, from there check the box to select and click ok. Run the app again and 
login to the local host. 

If it's not instaled go here to download and install:  
http://java.sun.com/javase/downloads/widget/jdk6.jsp

You can also get more directions from: 
http://myguide.bagarinao.com/2009/11/20/installing-youtube-direct.htm

this solved my issues completely!!