I discovered this site tonight. It worked perfect for me. It allows you to easily rip youtube movies and audio to your desktop. Then you can drag them straight into your itunes. Save any song into your itunes this way.
All you do is goto the site, copy and paste the youtube address of the video you want into the URL, click the video quality at the bottom and it does all the work.

http://www.dirpy.com/

Westen