I know this thread is a little outdated, but the issue discussed is always relevant and interesting ( what about your Hess-experience, Telecrater? It seems you never went back to tell us about it - or did you start another thread on the subject? )
I think that many of us have the same problem, that is, we can't afford a "real" teacher.
I've also tried the You Tube stuff but I don't do it anymore. First, the videos don't always have a proper quality. Second - and even more important - your practice risks being of no continuity. There's no overall plan to guide you through. A little here, a little there, a little everywhere. And you end up getting nowhere.
I think the best thing to do is to find a quality website with online guitar lessons. The best of them ain't free but I think they are worth the money. It's still only peanuts compared to the price of a "real" teacher. In addition on these quality sites you get the possibility of diving into a systematic overall practice plan to build up your skills. In case anyone in here should be interested I got some thorough reviews of some of them on my own website as a matter of fact.
If you are a beginner I would recommend Jamorama which is a splendid course with great ebooks as well as very fine video instructions.
I myself am a happy user of Guitar Tricks, the oldest online guitar lesson site on the web, but examine things for yourself. What is good for me isn't necessarily good for you.
Morten
www.music-and-guitars.com