I use Keepvid.com to download YouTube videos rather than install any of the shady downloader programs and I've only had a problem once, most probably due to my not updating Java, which I quickly rectified.
The dangers are the same as trying to get anything else for free on the internet, only use sites and programs you trust and download to a location that is covered by your security program's real-time protection. I use the desktop and if I download anything dodgy, MS Security Essentials and even sometimes Internet Explorer itself will warn me as soon as the download is finished.
RealPlayer is a terrible excuse for a piece of software, look at its entry on Wikipedia to see all the shit it used to do (and may still do) to your PC without asking.
VLC plays RealMedia (and pretty much anything else) well enough that I've only used it and Windows Media Player in nearly a decade. Download it from videolan.org, it's about 20MB.
Those guys at Narcotics Anonymous are assholes, I told them I have a 3 litre a day Coke habit and they kicked me out!
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