Embedded video just appears as code

I cannot get video to embed into my blog. I use Animoto and YouTube, and both of them just display the code when I paste it into the post.
An example can be seen here.
http://www.tracybookmanphotography.com/blog/2009/09/test-of-new-video-posting/
The same code works if I post it into one of my wordpress.com blogs.

I have installed and activated the video plugin, but am getting the same results.

Thanks in advance for all help!

-Tracy Bookman