Embeddy generates embed code for a wave & lets you embed the wave into any web page. Just add Embeddy to the wave which you want to generate embed code. Embeddy loads a gadget inside wave giving you options to select dimensions & colors of the embed. Once done, just copy paste the generated embed code to any web page to display this wave. The embedded wave will be live, I mean you can see people typing! But those who don’t have Google Wave account can’t see this embedded wave.
Bot ID: embeddy@appspot.com
Popularity: 100% [?]

When I go to embeddy@appspot.com, I get asked to sign in and create an application, as opposed to finding the embed code to paste into a Wave (as in your post here). How do I get that snippet of code you have above?
Thanks.
I copied the code from embeddy into a new HTML page:
http://bioinf1.sgul.ac.uk/healthinformatics/tests/googlewave/test1.html
but all I get is a blank page with the following error showing up in the Firebug console:
http://bioinf1.sgul.ac.uk/healthinformatics/tests/googlewave/test1.html
Firebug’s log limit has been reached. %S entries not shown. Preferences
b is null
anonymous(Object name=b) [embed.js (line 81)]
anonymous(Object name=b, Object name=c) [embed.js (line 19)]
test1.html() [test1.html (line 16)]
[Break on this error] b.appendChild(c);\n [embed.js (line 81)]
Worked for me http://www.kdb424.com/wave
edits and everything. Works just as if I were IN wave.