Flash file not working in iWeb 08

I'm creating my personal website using iweb 08. I won't host the site with .mac, but with a web service like Godaddy.com. I don't have a .mac account and I don't have Macromedia Flash. I don't know any html, but I want to incorporate Flash content into my site.
Ok, so I have successfully created a Flash file (.swf) using VisualHub. Now what? Am I supposed to place the Flash file somewhere inside the "Sites" directory in my computer? I haven't published my site to the web yet. Currently my site resides in my "Sites" folder locally (file:///Users/username/Sites/Site/Home.html). When I go to iweb I click on HTML snippet, I enter the following code, but nothing happens. The HTML textbox gets bigger but there is no video at all. The textbox is empty, I guess the problem lies with the location (placement) of the flash video file (test1.swf). Could someone tell me what to do after the Flash file has been created? Is this the right HTML code?

<object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000"
codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"
width="468" height="60"
id="mymoviename">
<param name="movie"
value="test1.swf" />
<param name="quality" value="high" />
<param name="bgcolor" value="#ffffff" />
<embed src="test1.swf" quality="high" bgcolor="#ffffff"
width="468" height="60"
name="mymoviename" align="" type="application/x-shockwave-flash"
pluginspage="http://www.macromedia.com/go/getflashplayer">
</embed>
</object>


I have tried inserting the flash file (.swf) by clicking on Insert > Choose and selecting the file. When I do this a textbox is created only showing the name of the file as a link. Has anyone seen this before? The movie is not showing up in any way. What am I doing wrong?

http://www.verticalmoon.com/tutorial.../iweb/iweb.htm