OK, I managed to get my ustream live channel embeded and working. Here is how I did it:
Changed editor, in global configuration, to TinyMCE. No editor didn't seem to do the job.
Created a new menu item and selected Iframe Wrapper as the Menue Item Type. In the Basic Options tab in the URL box, I entered this modified embed code: http://www.ustream.tv/embed/askr8wo5c89 ... ode=direct
" scrolling="no" frameborder="0" style="border: 0px none transparent;">
In the Scroll Bar Parameters tab I selected NO in the scroll bars option. In the width option Ientered 560, in height option 360 and pressed save.
My original embed code (with channel number changed for privacy) looked like this:
<iframe width="480" height="302" src="http://www.ustream.tv/embed/vmf837033j?v=3&wmode=direct" scrolling="no" frameborder="0" style="border: 0px none transparent;">
<br /><a href="http://www.ustream.tv/" style="padding: 2px 0px 4px; width: 400px; background: #ffffff; display: block; color: #000000; font-weight: normal; font-size: 10px; text-decoration: underline; text-align: center;" target="_blank">Live broadcast by Ustream</a>
I read in another fourm post to only enter, in the URL box, the part of the embed code that came after src= and was between quotes (as in " "). I have highlighted in bold and underline the part of my embed code that I used.
I don't know why this works. I simply kept at it until the pieces came together. Some of the entries don't match like the width and heigth numbers and the code is obviously only paritial but it works.
I hope this helps others with the same problem. Thank you for your help with this. I have included a screen shot of my web page with the ustream channel as it is now.