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you just copy a YouTube link and paste it into SnipSnip.it. It'll load the video and let you set the starting point and the ending point. Once you submit those points, SnipSnip.it will provide you with embed code and a link so you can share your snippet however you like.

Looks good. But splicd.com has been doing this for years.

This may also be one of the strongest signals that link sharing through Facebook, Twitter and other social sites is the way forward. Imagine searching an index of your friends' favorite ('liked') websites, rather than a spam-ridden search engine index. Today, our social graphs might be too small to cover the entire Web, but in a few years...