Btw. Hando forgot to say that it will only work if your Moodle administrator enabled Site Administration block -> Security ->Site Policies->Allow EMBED and OBJECT .
Moodle consider this a security issue as it states:
As a default security measure, normal users are not allowed to embed multimedia (like Flash) within texts using explicit EMBED and OBJECT tags in their HTML (although it can still be done safely using the mediaplugins filter). If you wish to allow these tags then enable this option.Personally I like this enabled despite the risk because of the nifty functionalities.