You're still not escaping the quotes in your first variable, $youTube. Notice how you place double quotes around the entire code snippet. That means that if you use double quotes within the variable itself you'll have to escape them with a slash. Alternatively, you could change all of the double quotes within the <object> to single quotes.
PHP Code:
$youTube=addslashes("<object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/SZfVs2_qoBk&hl=en_US&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/SZfVs2_qoBk&hl=en_US&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>");
$youTube = str_replace("width=\"344\"", "width=\"144\"", "$youTube");
$youTube = str_replace("height=\"344\"", "height=\"144\"", "$youTube");
echo("$youTube");
Untested, not sure if my syntax is correct. The point is that you can't define a variable that has double quotes as part of the value and also use double quotes to define it. You'll need to escape the internal quotes with a slash.
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