Title says it all, and yes it is better than the default one and it works well.
-You will also need Titanium Backup
-You will need Root Explorer (I reccomed this application like I stated before its a time saver and makes modding easy)
-The new 2.2 YouTube.apk
1)First with Titanium find the YouTube.apk and uninstall it. It should be at the bottom of the list.
Reboot your phone
2)Open Root Explorer then enable R/W. Now place the new YouTube.apk on the root of your sd card
3)With Root Explorer find the YouTube.apk then move it to /system/app folder
4)Then long press on the app then select permissions. Then tick it off in the following way
5)Now install it and it should install the application
6)If you want reboot your phone just to finalize everything. Now you see able to use the new YouTube application.