Right. So now, the videos aren't that grainy anymore whenever you embed the video into somewhere (i.e. blog, forums, another website), because YouTube finally enables the HQ option of their videos in the embed.
Look at this one. It will say in the lower right portion of the video, HQ. So follow onto where this little picture shown. Then you will see HQ option. I think this works only for those video uploaded in the right requirement for HQ.