To increase the resolution, you have to append "&fmt=" with youtube links.
Let me show :
If youtube link is:
http://www.youtube.com/watch?v=9kCinKpY2MM
Then change it to :
http://www.youtube.com/watch?v=9kCinKpY2MM&fmt=22
Notice that after &fmt= I have added a digit 22.
The trick is you can put number as your wish.
- &fmt=6 is for 448x336, Flash 7 video-900Kbps; audio - 44.1KHz 96Kbps Mono CBR
- &fmt=18 is for 480x360, H.264 video - 512Kbps; audio - 44.1KHz 128Kbps Stereo
- &fmt=22 is for Maximum 1280×720 (720p), H.264 video - 1024Kbps; audio - 44.1KHz 232Kbps Stereo