High-Quality YouTube Videos Coming Soon
I was at that conference, and while the question about high-quality video was asked, Chen pretty much said they were happy with the quality of online video they had, and were much more focused on the reach of YouTube, keeping the files small so that everyone could watch them, even those without a lot of bandwidth and in other countries.
He certainly didn't say anything about a high quality YouTube in the next three months. I think this blogger read more into the talk than what Chen said. However he implies that he talked to him directly, so I can only vouch for what was said at the conference.