My hosting company has provided the following:
I checked the same at server and with the help of few tests found it to be working good.
Even phpinfo page shows ffmpeg to be compiled fine with php : http://youthtoob.com/phpinfo.php
This error is moreover an error related to vshare script.
Is this true that the vshare script might be in need of modification/fixing for this feature to function properly?

You assistance is greatly appreciated.

Here are the steps to take in order to replicate the error:
1. Find a video on youtube.com or any video sharing site.
2. Copy that page's URL.
3. Visit: http://youthtoob.com/media/admin/
4. Login Username: xxxxx - Password: xxxxx
5. Go to: Video Processing > Import Video
6. Wait a few minutes for video to import in the background.
7. Go to: Video Processing > Process Queue > choose :Convert Again . Click "Update".
8. Go back to Process Queue. If it says "Download Finished" for the video you imported, then visit: http://youthtoob.com/media/cron.php to see process results.

You should then see the results of the cronjob displayed in your browser window.
Username & Password are blocked for security reasons. I can email or PM you if want my login info to test this further.

Sincerely,
Harrison