Download "Any Video Converter" and convert your videos to MP4. You can then play the videos in the default player in Nokia E72.
OR Download and install "Smart Movie Player" in your E72 and it will allow you to play .avi videos.
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You can use a handy tool called NoteBurner YouTube Video Downloader. It helps you download any Youtube video as MP4/MKV format, and transfer the downloaded video to your Nokia.
When you save a video, it saves the link into your gallery. But I don't think you can download the video and watch it later without going onto youtube.
if uusing computer, try download youtube downloader then when you download ,download the video the download socusoft web video player and convert