Insert the video into PowerPoint
Step 1: On the Insert tab, point to Movies and Sounds, and then click Movie from File.
Step 2: Click the video you want to use and then click OK.
Step 3: After you click OK, you' are promoted with a message asking how you want the movie to start in the slide show. I recommend you choosing "Automatically "even if you want the movie to play when clicked. And that's done.
Tips:
1. This is the easiest way to insert a video.
2. When playing the video that is inserted in this way in the PowerPoint, it only shows the video picture, and only has two control options: play or stop. So you can't select the playing time freely
3. Only video in formats of AVI, MPEG and WMV can be inserted in this way
4. Always put the movie in the same folder as your PowerPoint presentation.If you later move the PowerPoint presentation to another computer, copy the movie too. Keeping your movie in the same folder as your presentation ensures the link will still work. However, you should always test the movie on a new machine just to be certain. Re-insert the movie, if necessary.
How to Put YouTube Video Clip to your PowerPoint Presentations
http://www.ppt-to-dvd.com/learningcenter/how-to-put-youtube-video-clip-to-your-powerpoint-presentations.html#149