We don't see WPtouch active on the url posted so we cannot troubleshoot at this time. WPtouch and WPtouch Pro are fully compatible with YouTube video embeds. If you're seeing an issue with display, you'll want to test for plugin conflicts where another script is disrupting page rendering in your mobile theme.
To isolate which plugin(s) may be contributing to the trouble, deactivate all except WPtouch from within the WordPress Plugins area, clear your browser cache and local data then test.
If WPtouch functions well, you may then enable the rest of your plugins one at a time, repeating the process, until you can identify which is/are causing the problem.