Jon,
I am guessing you are referring to the Jetta TDI review that was obviously lifted from Checkered Flag's site. I looked at the source code and the file is even named 2010-eoscheckeredflagreview.swf and is behind hosted at streamhoster.com. From a legal standpoint, when you post a video onto YouTube you are allowing the redistribution of the video within the YouTube network. It could be argued to that using the HTML embed codes provided by YouTube, you would still be within the YouTube network. Conversely, due to the fact the file has been moved from YouTube's servers and is being hosted on a 3rd party network you could very strongly argue copyright infringement.
My question would be does the webmaster have permission to use this file? Are they a partner of Checkered Flag?