Am I crazy or did the ability to embed youtube links go away

I discovered the wpDiscuz plugin about 9 days ago and trialed it out on my site to see how it would work. I was considering getting the media uploader this week and have run into an issue though. I could have sworn that the product automatically detected youtube links in the comments and properly embedded them. I went to the demo site on wpdiscuz.com and it doesn't appear to work there either.  So that brings me to my question :

1) did this functionality exist ? If not, can you run wpDiscuz alongside other plugins that do in fact convert comments with youtube links ?

Ultimately, I was envisioning that wpdiscuz would become the ultimate solution for comments becuase it was embedding .jpg, .png, .gif, www.youtube.com and then i could purchase the media uploader so that users could upload images as well. But my concern now is that this might not be possible. 

Please let me know if the tool is supposed to work with youtube links and if not, if it plays well with other plugins that do in order have a complete solution.  

Thanks,

Scott