I have tried this on both a 2.8.6 WP installation and a 2.8.5.
I tried it on the 2.8.6 first and got nothing - no error, but no page peel either. Just nothing at all (you can view the site at digigirlhost.com)
I tried switching to the default theme, and deactivating all other plugins. No dice.
So then I installed a brand new installation (2.8.5) on a different domain, with no plugins or themes or anything. Just base WP and the Page Peel plugin. Nada. Still doesn't work. No error, no page peel.
I asked my host (Hostgator) if there some reason SWF files wouldn't load and they said they couldn't see anything.
Any idea what is keeping this from working? Or does it just not work with 2.8+?