This is probably going to be very difficult because YouTube uses both a flash player and a HTML5 player, but is there any possible way to make sure that when ads are being played, the volume is muted, and when the actual video is playing, the volume is unmuted?
I would prefer to not block the ads.
31 Answer
If you use Chrome, there is an extension called YouMute(r) which mutes the YouTube player when ads are playing. When the ad finishes, the player is unmuted.