I bypassed my parking brake on my X930BT I was wondering if it is possible to watch youtube videos on the screen when connected to my iPhone?

do I need to change settings? is it at all possible?

No problem to watch youtube from your phone on the screen. Any apps that display using video out like youtube, MotionX will show on-screen.

 

If you want to have screen mirroring of the phone with everything including home screen and all apps you'll have to jailbrake and use tvout. I did it on my phone but didn't use it much so went back to an unbroken OS.