I found out that I could watch better quality YouTube videos by inserting some code at the browser address bar.
For example, if the address is
http://www.youtube.com/watch?v=-tw6jcfuD_k
Just add the code &fmt=18 at the end.
Now it should look like this
http://www.youtube.com/watch?v=-tw6jcfuD_k&fmt=18
Let's compare with this video clip of Charice Pempengco ( singing sensation from the Philippines )
Normal quality ( looks pixelated )
High quality ( less pixelation )
Another thing I've noticed is that it loads much faster than normal quality. So whenever you watch a video on YouTube.com paste the code at the end if there is no link to the higher quality version.

Just informing that this is not HD quality. You can try pasting &fmt=22 instead of &fmt=18 , and most of the time it won't give you HD quality, unless the author have uploaded HD quality.
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