Note, in the last release there was a minor regression with regards to the small thumbs. In this release to fix the incorrect thumbs that were previously created you may have to delete the incorrect thumbnails contained in your styles folder (it is regenerated automatically). As usual, please do this on a copy of your site somewhere before doing it in production. For more information about the changes in this release click the links below.
I recommend using 7.x-3.1 instead, however, if you are on the 7.x-2.x branch and for some reason want to keep on that branch, here's a release that appears to work ok with current youtube videos and media module as far as my tests are concerned.