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This video tutorial demonstrates how to customize the embedded YouTube video for Moodle by making basic tweaks to the embed code. The process involves copying the code from YouTube, pasting it into Moodle with editing turned on, and editing the HTML source. The tutorial shows how to add a border to the video to make it stand out on the page. Additional tweaks such as changing the appearance and behavior of the video can also be made by modifying the embed code.