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Aww, ain't that sweet - Photobucket and MySpace have gotten together and sorted out their problems. Video embeds are working once more on MySpace pages, and I'm sure Photobucket will be much more careful in future when it comes to rolling out sponsored content. In fact, they've put out what amounts to an apology to MySpace - very strange for a company that was hell-bent on dragging them over the coals:
Moving forward, we’ve established open lines of communication and procedures with MySpace to prevent a sudden block of Photobucket content in future. We want our users to be able to share their content and understand it must be within the framework of MySpace’s Terms of Service for it to appear on the site.