THIS IS BROKEN, SEE EDIT

<script type="text/javascript">
$("a.more").fancybox({
                    'titleShow'     : false,
                    'transitionIn'  : 'elastic',
                    'transitionOut' : 'elastic',
            'href' : this.href.replace(new RegExp("watch\\?v=", "i"), 'v/'),
            'type'      : 'swf',
            'swf'       : {'wmode':'transparent','allowfullscreen':'true'}
        });
</script>

This way if the user javascript is enabled it opens a fancybox with the youtube embed video, if javascript is disabled it opens the video’s youtube page. If you want you can add

target="_blank"

to each of your links, it won’t validate on most doctypes, but it will open the link in a new window if fancybox doesn’t pick it up.

EDIT

this, above, isn’t referenced correctly, so the code won’t find href under this. You have to call it like this:

$("a.more").click(function() {
    $.fancybox({
            'padding'       : 0,
            'autoScale'     : false,
            'transitionIn'  : 'none',
            'transitionOut' : 'none',
            'title'         : this.title,
            'width'     : 680,
            'height'        : 495,
            'href'          : this.href.replace(new RegExp("watch\\?v=", "i"), 'v/'),
            'type'          : 'swf',
            'swf'           : {
                 'wmode'        : 'transparent',
                'allowfullscreen'   : 'true'
            }
        });

    return false;
});

as covered at http://fancybox.net/blog #4, replicated above