Since the Youtube API requires that you run your files on a webserver rather than locally (http://code.google.com/apis/youtube/js_api_reference.html#GettingStarted) how can you test the API without pushing it to your live production server?
I’m using Ruby on Rails hosted on Heroku.
That does not sound like it needs to go to a production server. I am not familiar with Flash, but
http://localhost/test.html(as opposed tofile://test.html) probably works. And even if not, any old test server will do.