How can I get my Kindle Fire to play YouTube videos

Recently YouTube did a update on its Adobe Flash Player on handy tablets, many Kindle Fire users find their Kindle Fire tablets aren't able to play YouTube videos fluently as before, the problems comes like this:

Situation one:
"I did a search for kindle fire and YouTube issues or video issues period. a few days ago i was on a website attempting to watch a video clip but it said i need to update my adobe flash player. clicked the link to download the flash update and it wouldn't allow the file to run. my husband then changed one of the settings and now i'm having an issue with YouTube videos automatically downloading onto my kindle instead of taking me to YouTube to view.
does anyone know how i can watch embedded videos from their sites without downloading them onto the kindle?
"   from Amazon Kindle Fire forum
Situation two:
"I've been using Fire to watch YouTube since I bought it in November and it was great - quality is good, video at good resolution and fit the whole screen.
However, at recent weeks, the YouTube video is playing at very low quality, and not even full screen. It just fit about 70% of the Fire screen. I've tried resetting Silk setting, turn on/off Flash, accelerated browsing etc but the low quality YouTube persist.
Anyone has any tricks to fix this ?
from Amazon Kindle Fire forum

You can try to solve it by this way:

The last update turned Flash off,
Open your browser.
Click on the Menu icon at the bottom-center.
Choose Settings
Scroll down until you find Flash.
Click on Flash to enable it, and you're good to go!

So with Internet connection, you can play YouTube video on Kindle fire.
However, if you want to transfer the YouTube video from the local drive to Kindle fire for play when without Internet connection, you have to convert the YouTube video to Kindle fire supported video formats MP4, and you can free download and try the YouTube to Kindle Fire Video Converter for Mac which enables you convert YouTube flash video to Kindle Fire MP4 in quick speed and super quality. Plus, it can convert other video formats like AVI, MP4, WMV, MPEG, QuickTime(MOV), MKV, MOD, TOD, ASF, 3GP, 3G2, AVCHD/M2TS/MTS/TS/TRP/TS, etc. to kindle Fire Tablet MP4 as well as YouTube.

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Tutorial on how to convert and play YouTube video on Kindle Fire:(Lion included)
If you have problem to download YouTube video, you can use Free YouTube Downloader for Mac from Doremisoft.

Step 1: Add YouTube files from your PC Hard Drive to YouTube to Kindle Fire Converter.
add YouTube video 
Step 2: Set best output format for Kindle Fire
Kindle Fire Video: H.263 (.3gp, .mp4), H264 AVC (.3gp, .mp4), MPEG 4 SP/ASP (.3gp), VP8 (.webm)
kindle fire MP4 .
Tip: setting 720p resolution is ok.
Step 3: Click "Start" button to begin convert YouTube video to Kindle Fire MP4. You can define the video save destination to the way you best like by resetting output option.

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