This tools is very important to every blogger.When you put the video address and click Ok, embed code will appears in text box.

1.Log in to your dashboard--> layout- -> Page elements

2.Click on "Add a Gadget"

3.Select 'HTML/Javascript' and add the code given below and click save.

<script>function go(){var x=document.theform.url.value;var YT=(function(){return {getId:function(u){var a=u.match(/(\/vi\/|v=)([^&]+)/);return (a&&a[a.length-1]);}};})();document.theform.thelink.value=('<object width="'+document.theform.width.value+'" height="'+document.theform.height.value+'"><param value="http://www.youtube.com/v/'+YT.getId(document.theform.url.value)+'&searchbar=0&iv_load_policy=3&ap=%2526fmt%3D18" name="movie"></param><param value="true" name="allowFullScreen"></param><param value="always" name="allowscriptaccess"></param><embed allowscriptaccess="always" width="'+document.theform.width.value+'" src="http://www.youtube.com/v/'+YT.getId(document.theform.url.value)+'&searchbar=0&iv_load_policy=3&ap=%2526fmt%3D18" allowfullscreen="true" height="'+document.theform.height.value+'" type="application/x-shockwave-flash"></embed></object>');}</script><form action="#" name="theform" onsubmit="return go();"><input onfocus="this.value='';this.style.color='#72a8d2'" style="font-size:110%;color:#aaa" value="" name="url" size="50" type="text"/> <input style="font-size:110%;" value="Ok" onclick="javascript:go();document.theform.thelink.select()" type="button"/><br/>Width: <input onfocus="this.value='';this.style.color='#db0000'" style="color:#444;" value="660" name="width" size="3" type="text"/>   Height: <input onfocus="this.value='';this.style.color='#db0000'" style="color:#444;" value="544" name="height" size="3" type="text"/><br/><div class="code-block-corner"></div><br/><div class="code-block"><div class="code"><br/><div style="background:#f3f6f7;padding:5px;"><textarea style="width:80%;height:100px;overflow:hidden" name="thelink"></textarea><br/><div style="text-align:center;color:#000;font-style:italic;font-size:130%;"></div></div></div></div></form>

Now you are done.Look at the picture below.