I was just taking a gander at the Sylvania 7" Smartbook site for the 7" netbook and saw that a new OS update was released on 22 February that I guess fixes the YouTube application, but is indeed a full system update.
http://www.sylvaniacomputers.com/product.php?id_product=41 is the link
(Slightly offtopic I flashed my netbook from Android 1.6 back to CE following these instructions by the way--worked great for me: http://netbook.poodwaddle.com/
Note I cannot verify the integrity of the ROM images listed. After the two Flashes, I went back to the YouTubeFix OS update. So I would just use those ROMs as a jumping point to revert to CE from Android
I just installed this aforementioned update and it's AWESOME!!! The stupid sidebar is gone, wifi works.. I am so happy right now. Also the taskbar is visible too. No hacking needed!!!!!!! How about that!!