[ChrisMorrisCo]

You may be right, however, some people haven't experienced the caching issue when using the same browser and version that I was using at the time of this post (Chrome 17 just came out), which makes me wonder if the download limitation was implemented by YouTube to conserve bandwidth should a user click off the video early, thus saving YouTube from sending the entire video to the user when they're not going to watch it.

Interestingly, my caching issue seems to have disappeared since updating to Chrome 17. I need to do some more tests, though.

I think you're right, though, more likely to be browser issues more so than YouTube issues.