I am hopefully going to point those whose get this message when they update in a more helpful direction. If the error was really #2036 (2035 means the file doesnt exist)…..and just your Youtube videos are not playing after the update, then read on.
When I updated to WP 3.0 and updated all my Plugins I noticed that the new version of wordtube was looking for player.swf in a new location and nothing was being displayed in the wordtube area of my web page. That was obvious enough to fix. I just went into the wordtube settings and told it the directory for player.swf (the wordtube update had removed player.swf from the wp-content/plugins/wordtube directory so I had to go fetch a backup and them set the path in settings). That worked fine and I could then see the player and playlist images. However, when I tried to play a video I got error #2036 in the player. All my videos were Youtube videos. A little research and I discovered that I had forgotten that the yt.swf was also required to be in the same directory as player.swf and it had been deleted in the update as well. I fetched a backup of yt.swf and put it in the player.swf directory and everthing is now back to normal.
Note – You may want to restore these player files to some location other than wp-content/plugins/wordtube or I supposed you run the risk of them being deleted on future updates. It looks like the author now expects that you are going to keep these somewhere in your wordpress uploads directory structure but I that is up to you.