I found this from a recent Life Hacker article on how to disable YouTube Video Ads:

  1. Open up a YouTube video (any will do).
  2. Open up the developer console (Ctrl-Shift-J for Chrome, Ctrl-Shift-K for Firefox)
  3. Enter the following code:
document.cookie="VISITOR_INFO1_LIVE=oKckVSqvaGw; path=/; domain=.youtube.com";window.location.reload();

Or just use Ad Block Plus for Chrome

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