swfobject.embedSWF youtube video overlay in chrome with opacity not working
With {opacity: 0.8} in Firefox 16.0.2 and IE 9 movie looks exactly like in Chrome 23 (semi-transparent with image and text visible through it). In Opera 12.02 movie looks sort of bleached (mixed with big amount of white).
So IMHO that's not a cpecific bug of Chrome. That's behavior of browsers - somehow apply opacity of element to nested object (because object is nested into your div class="overlay").
Update: place your swf player after div class="overlay" with higher z-index (e.g. {z-index: 5001;}, not inside of overlay.
I ended up using rgba(0, 0, 0, 0.8) which fixed it in the CSS