I'm having issue using oembed on Media Temple DV4, I'm assuming its a NGINX issue right now. After some digging into the included oemebd code, I noticed that when you use the short code embed from youtube or vimeo the server doesn't follow the 301 rederiect of the shortner. The server queries youtube, and interprests teh response as an okay and doesn't follow it through.
It's not heppening locally, just wondering what settings need to change on the server.
Interesting, I'm running my site on Nginx but actually haven't tested the Oembed stuff... I might do so and see if mine works... if it does I'll post my nginx conf settings - if not it will be interesting to work out the issue.