I received a response form producer of the Fig movie..."The Queen of Trees", I'm sure you all have heard or watched it. I asked their permission to embed it in my LAFF website...and this is what they said.
"I have checked with our distributors and they are happy if you want to link through to the YouTube film and want to take a frame grab from the film to promote it. Unfortunately they won't let anyone embed it - whether website, blog etc". 

so...How do I do it?

Hi Aaron,

If you see a video on YouTube, you do not have to ask the owner's permission to embed it on your site. The owner specifies their usage preferences when they upload it to YouTube. If they do not want you to be able to embed it, instead of playing the video, it will show a message that says, "Watch this video on YouTube. Playback on other websites has been disabled by the video owner." So, there's your answer. If they don't want you to embed the YouTube video, it won't work. Technically speaking, there are ways to rip the video and then re-upload under your own YouTube account so that you could then embed it on your page, but that would be stealing. There is no reason why you need to anyway. As the film owner suggested, just put a few still frames from the film on your website, say some nice things about it, and provide a link to the video on YouTube.

Paul, when I cut the Highlighted address from YouTube (when you click SHARE) when I want to past it in my website it does NOTHING... you would think it took but it doesn't ... I have a sample Video, on "Caprification" page... and it's made to replace the content by pasting the address. so...I did and NOTHING. ugh.
That's why I contacted the producer and owners of the movie and they responded this way mentioned above.
So...I don't know what to do. I really want that movie in my website.

You can't have it on your website.  That's the answer you got.  You can post the link.

Bob, 
this won't become a Legal issue in future for my website?

I did it a different way.
Just placed Button system :)
One for each movie.