Yes, its true. We will finally be able to stream actual YouTube videos on Tivo, according to David Zatz.

As I’d suspected, TiVo support for YouTube is indeed hidden within the 9.4 software update. Series 3 and TiVo HD subscribers should start seeing the application show up as early as tomorrow (Thursday), though the rollout will be completed over the next few weeks. And in some form of meta-irony, I’ve shot a brief video of YouTube on TiVo…

This will be the first time that TiVo will not be using MPEG-2, but rather H.264. This means that Series2 TiVo users will not be able to have this new YouTube feature due to the lacking option to add codecs.

Here’s a YouTube video displaying the feature in action:

• Source.