The best way to do this would be to parse the resonse from heywatch download XML into the sideload call:
<updated-at>Fri Oct 27 14:26:18 CEST 2006</updated-at>
<title>YouTube - Rube Goldberg Officeplace Contraption</title>
<progress percent="100" current_length="2109"/>
<created-at>Fri Oct 27 14:26:11 CEST 2006</created-at>
Parsing out the URL and sending it to the sideload command will let you easily integrate. I would like to get more information about what is missing and what you would like to see improved. On the horizon we have H264 support coming which should increase the quality of the video. Beyond this is there anything else you are looking for specifically in terms of video trascoding?