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Understand Google's advertising policies, including ad approval status and account suspension
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YouTUbe link as a destination URL and Final URL

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# 1
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Is it possible to add a YouTube video link as the destination and final URL in an AdWords campaign? 

Re: YouTUbe link as a destination URL and Final URL

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# 2
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Yes, it is possible, but you'll also have to have YouTube be the Display URL, too.


Keep in mind that AdWords has a strict double-serving policy - Two Ads from the same domain cannot appear in the AdWords Paid Search Results for a single query.  Therefore, if another advertiser is also trying to drive traffic to YouTube for the same Keyword, only one of your Ads will show.  


I can't remember for sure, but I think there may be exceptions for driving traffic to a site like YouTube, but for now I'd assume that only one YouTube Ad can appear in the Paid Search AdWords results.