Thanks for the suggestions in your post. It worked!
I did have to reboot the TV a few times after it had upgraded. Things I noticed that may be helpful:
1. My TV Firmware went from 1009 to 1024.3 or something like that.. A big difference. This I thought was strange because I had used the firmware update via internet on the TV many times, but obviously it is not working very well. So upgrading the firmware via USB made a big difference. Maybe it will work better now? Time will tell.
2. When you first try to run the Youtube App it will not run. Almost like before. But, after another reboot of the TV it had been removed automatically. Like it had detected that it was no longer the correct App version or something..
3. Just go to the Samsung Apps section on your TV and install the Youtube App again. This time the version will be a much more recent version. Mine had gone from something like June, 2011 version to maybe April 2012 version.