I am getting the same problem

Ubuntu 8.10 32bit, Pretty much the same as the post above

A bit more information

It is not just white dots, it is also black dots. When you have video 
displaying bright colours or white, you see black dots, lines. Youtube seems to 
be the only one effected, I tried Metacafe, and Google Video, and both showed 
their own material fine. When watching Youtube from google video however, the 
pixels and artifacts returned. When opening up the downloaded youtube file 
found in the /tmp file, the video displayed fine (Played in VLC)
Some video seems to be worse than others, and some videos display no artifacts 
whatsoever. It is just a suspicion, but I think it perhaps might be on the 
aspect ratio being properly converted into youtube. What I mean is that the low 
quality, ripped content, and anything put onto the youtube haphazardly seemed 
to give off the most pixel artifacts. The sponsored videos however, or videos 
that received proper conversions (Such as being in a letterboxed widescreen vs 
being pan-scanned) tended to be near perfect.

I am not sure if that helps or not, but~

-- 
youtube has white spots in videos
https://bugs.launchpad.net/bugs/253484
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