YouTube videos load so slow compared to other browsers

YouTube videos are completely downloading in memory from the start, slowing down the PC a great deal.
So if I try to watch a 20-min 1080p video, I have to wait ~20-30 secs to load completely in the memory. Only after that can I watch it without the PC freezing completely.
How can I get back to the original functionality, where the videos were downloaded incrementally as you watched them?
My setup is: Intel Core2Duo 2.2, 3.2 GB RAM 800MHz, ATI Radeon HD 5670 w/1GB memory, 100Mbit broadband (~8-10 MB/s with youtube servers)
However, Chrome for example loads flawlessly with almost no lag. But I love Firefox and don't want to switch to anything else...
Please let me know if you have any ideas.
Thanks in advance,
Nicolae

Hello,
Thanks jscher2000 and cor-el for the support.
I disabled all the plugins beside Shockwave Flash, still the YouTube videos freeze the PC until completely loaded, eating 100% of my CPU.
My only Add-ons now (when I re-enabled them) are:
* Shockwave Flash
* Adobe PDF
* Google Update
* JRE 7u7
* App Button Color
* Firebug
* Live HTTP Headers
However, I noticed a few more things:
* The Firefox PC-freezing occurs mostly on high-resolution videos (1080p)
* Chrome puts his video download/processing thread on a lower priority somehow, so the CPU is at 100% too, but the other programs (including the video stream itself) are not affected
* Putting Firefox and Chrome side-by-side with the same video stream, 1 real-life minute will allow Firefox to play ~1:02 min of YouTube video, while Chrome remains at ~0:58.
I also attached a screenshot of my PC streaming on both browsers, maybe that will help anyone.
Thanks again for all your support,
Nicolae

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