In Rebol 3 you get:
** Access error: protocol error: "Server error: HTTP/1.1 403 Forbidden"
The message you're getting is Rebol 2's not-so-eloquent way of saying that. (You can also enter it in Firebug and see that using this raw URL does not work.)
I'd imagine that YouTube will only let you get the stream if the requesting HTTP header matches a certain pattern. Among potential things it might look for is a cookie specifically crafted for your session and designed to expire after a certain time.
As far as I understand it YouTube is not too keen on third party downloads of video data. They used to have a get_video
API but appear to have disabled it. So you'll either have to fake up a cookie and make them think you're one of their players, or find a service which is friendlier to this sort of application.