Adding video link and playing the video in my webpage

I am currently working on a website where user is able to update his/her status on a text area. If the user enters a link(For example, it is the video link), i should have a script that detects the link and embed it as a video once the user submits the status. It is similar like Facebook status update. Can anyone advice me, how can i go about doing it? I do not want to use paid services which are available on the net as the website i am doing is for students and i am doing the project for free.

The current framework i am using for my development is cakephp (PHP).

Solution

A jQuery plugin to hook into the YouTube Chromeless Video API.

Sample Usage:

<a href="http://www.youtube.com/watch?v=sxUjB3Q04rQ&quot; class="video-link">Bolt Arms - Around the World</a>

$(document).ready(function() {
  $('a.video-link').ytchromeless();
});

Requirements:

jQuery: http://jquery.com/
SWFObject: http://code.google.com/p/swfobject/
YouTube Chromeless Video Plugin: http://github.com/davist11/YouTube-Chromeless

Options:

videoWidth : '640'
videoHeight : '360'
videoIdBase : 'ytplayer'
params : { allowScriptAccess: 'always', wmode: 'transparent' }