As you likely already know, YouTube is all proud that they now have added commercial badness to YouTube Videos. Well as much as that sounds like a good idea for Google (owner of YouTube) it doesn't make for a very good viewer experience so you'll understand why I am excited to see that there is a way to block those ads on YouTube.
First, you need to get Tubestop, a Firefox extension that was made to stop the auto-playback of YouTube videos. As luck would have it, Tubestop also stops YouTube ads from displaying as well!