If you are seeing the text inside the <div> that starts "This element can contain...", then it means that the SWF Object script is not replacing the <div> with the Flash movie.
First thing I would check is whether your swfobject.js
file is in the same folder as the HTML page - is this where it is (if it is not in the same folder it won't work)?
Second, are you running it from your desktop? If so, which browser / OS are you using?
Third, just to check, are you able to see Flash movies on other web sites ok? (Some new machines come without Flash installed.)