Change the iframe url to the embed video. http://jsfiddle.net/f7cRj/4/
$.each(data,function(index,item){
content +='<div class="userdata">';
content +='<div class="username">'+item.bloopid+'</div>';
content +='<div class="username">'+item.bombscount+'</div>';
content +='<div class="userurl">'+item.keywords+'</div>';
content +='<iframe class="usevideourl" src="'+item.videourl.replace('watch?v=','embed/')+'"></iframe>';
content += '<img src="'+item.thumb+'" class="userimage"></img>';
content +='</div>';
});