I will second Aidan Trent's message. To program a youtube clone from scratch that is capable of scaling to large proportions is very difficult and expensive.
You need extremely powerful servers and ridiculous amounts of bandwidth. 10K is not such a ridiculous price at all. It's fairly reasonable.
You cannot really think that a $50 script will do everything you want it to once the site starts growing. Sure, for you and your friends, and a couple hundred visitors per month it might be fine, but you need to realize that the script has to transcode from mpg/mov/avi/etc to flash video (very hardware intensive), and each of these videos will be about 10MB each. A single server cannot handle very much traffic at that rate, which means distributed computing/clustering/load balancing.
But go ahead, try one of those YouTube clones... you'll see for yourself
